President Luis Abinader spoke to the nation on the evening of Monday, 7 March 2022 to announce new measures to attack imported inflation and counteract the direct and indirect effects of the Russia-Ukraine war.
Among the measures:
Fuel prices will remain unchanged for four months, and as long as the barrel of West Texas oil is above US$85 and below US$115. Any price movement above US$115 per barrel will pass on to domestic prices, but the government will not apply the ad-valorem tax in the price calculation at this price level. The President estimates the measures will represent a subsidy of RD$600 million to RD$1 billion a week, or around RD$9.6 billion to RD$16 billion during the four months of the measure.
Premium gasoline prices will keep to RD$293.60 the gallon; regular at RD$274.50; optimum diesel at RD$241.10; regular diesel at RD$221.60. Natural gas will keep to RD$147.60.
Banco Agrícola, the government farm development bank, will give borrowers a six-month grace period for principle loan payments.
The government’s National Institute of Transit and Ground Transportation (Intrant) will be subsidized to avoid price increases in public transport.
The government is sending to Congress, for urgent approval, a bill to reduce to 0% the tariffs to the most important basic food basket items. The ruling PRM party is majority in both the Senate and the Chamber of Deputies.The six month tax period will apply to: cooking oils; butter, powdered milk, edible fats, canned goods, chicken, garlic, pasta, beans, flour, bread, pork and beef.
Imports of corn, wheat, soybeans, flour and vegetable fat will be subsidized at 10% for six months.
Welfare program spending is increased by an additional RD$150 billion, or 2% of the GDP. The resources will be used to increase funds for the Superate, Bono Gas, expansion of the food rations in economic cafeterias (Comedores Economicos), installation of more Inespre food markets, and doubling of warehouses for direct sale of products in the country.
A space for inter-institutional coordination is opened between the Ministry of Hacienda, the Ministry of Industry and Commerce, the Ministry of Agriculture, the Tax Agency and the Customs Agency for talks and implementation of administrative measures that will impact the retail prices of basic food basket products. Government procedures and permits are being simplified to ensure zero red tape in implementing these programs.
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Noticias SIN
Diario Libre
Listin Diario
N Digital
8 March 2022