Changes introduced to the tax reform bill where it passed the first vote in the Chamber of Deputies last Wednesday were rejected by government that classified some of them as “unacceptable”, especially the 1.5% anticipated tax on net sales, the measures that eliminate the exchange commission, and those that limit the Monetary Board’s capacity, according to a report in Diario Libre. A documented presented last night by the economic team that discussed the reform bill warns that if the bill is passed on those terms, the Executive Branch would veto it and submit the 2006 Budget mantaining the current exchange commission. President Leonel Fernandez called a meeting for today at 11 am with Senate and Chamber of Deputies Presidents Andres Bautista and Alfreda Pacheco. The Chamber of Deputies has postponed the second vote on the tax reform bill until next Tuesday.
Listin Diario reports that Presidential Technical Secretary Temistocles Montas said the use of a budget that keeps the exchange commission would close the doors for the DR to enter the DR-CAFTA next January. The agreement requires the dismantling of the exchange commission. Montas spoke in the presence of Tax Department Director Juan Hernandez, and Customs Department Director Miguel Cocco. He praised Chamber of Deputies President Alfredo Pacheco’s decision to postpone the second voting on the bill until next Tuesday.
El Caribe indicates that Pacheco has insisted the reform bill will be pondered adequately before approving it and that alternatives will be sought to avoid taxing basic foodstuffs.