The Abinader administration has revealed wasteful spending and alleged corruption was normal in the past government. Actions are underway to make government spending more efficient. The Abinader government also announced it would sell government assets. It hopes to receive RD$96 billion for the sales.
Yet when the new government incorporated revenues from new taxes in the 2021 National Budget Bill, the protests were prompt in coming. The new taxes are to compensate for the deficit for the overspending by the past government and Covid-19 relief government measures.
Among the new taxes proposed are: The taxing of the Christmas wage, including Christmas salaries, taxes on digital services from abroad (Netflix, Amazon, Airbnb), purchases in foreign currencies and financial assets.
Hundreds of thousands in the middle class now complain they have been affected by the economic downturn and are not included in the benefit packages. They will be affected by the new proposed taxes.
TV host Mariasela Alvarez of Esta Noche con Mariasela recommends the government step up investigations into past government officers’ illicit fortunes to recover billions this way. She also proposes the government order a general reduction in the high wages paid in government.
In an editorial on 5 October 2020, Diario Libre’s Adriano Miguel Tejada criticizes that again the rich and the poor are exempt, while the middle class that already places the brunt of taxation is again being penalized.
Former presidential candidate for Al Pais, Guillermo Moreno also complains that the taxes’ focus is on the middle class. “That is, on those that pay most taxes, that at the same time are those who are most hurting from the present health and economic crisis, and many have lost their jobs or have serious difficulties in developing productive activities,” writes Moreno in an op-ed contribution to Diario Libre on 5 October 2020.
Guillermo Moreno adds: “It appears that the new administration has preferred the easy route of more public debt, placing the burden on the usual victims and more privatizing of public services.” He writes that much of the wasteful spending and “legalized corruption” enjoyed by the former administration is kept in the new government.
Temístocles Montás, president of the leading opposition party, the Dominican Liberation Party (PLD) said that the government should separate the taxation issue and present a tax reform bill if it wants to increase taxes. Montás is a former minister of economy.
Diario Libre and El Dia, the two leading free newspapers, carry several editorials and news articles protesting the increases in taxation affecting the middle class.
A protest is convened for Monday, 5 October 2020 at 5pm at the Plaza de la Bandera, the emblematic site that marked the difference for government change.
Early on, Economy Minister Miguel Ceara Hatton spoke of cutting taxes to stimulate the economy, not of increasing taxes.
Read more in Spanish:
Listin Diario
Diario Libre
Diario Libre
Listin Diario
Diario Libre
Diario Libre
Diario Libre
Diario Libre
El Dia
El Dia
5 October 2020