The president of the National Association of Herrera Businesses and Industries (ANEIH), Leonel Castellanos, says that the present electoral uncertainty could well have an effect on business and industry. He said to return the confidence to investors, the elections need to be transparent. He called for all Dominicans to unite for the celebration of the election on 15 March.
He said the impact of the political crisis is now less because the country’s fuel bill is down. “I do not see, in the immediate term, any reason for instability,” he said, “unless there is nervousness and that changes the situation.” He said there is no economic variable that can affect the exchange rate.
“We do not doubt that we are growing, but we are growing without development,” he told Diario Libre. “It is a bubble that is about to explode,” said Castellanos referring to the economic growth in the country that for years has been among the highest in Latin America.
He said that in the case of the value-added tax, ITBIS, ANEIH’s position is that the tax could be reduced to 10% from its present level of 18% at present if more goods and services are taxed. He said the country needs a fiscal reform, but one where government is tied to better management of taxpayer money. He said a Fiscal Responsibility Bill has stagnated in Congress for years “because the government is not interested in passing it.”
In the interview with Diario Libre, Castellanos also spoke of companies, especially small business that need to see a reduction in the high cost of severance payments.
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Diario Libre
25 February 2020