President Luis Abinader announced he has scheduled to speak on Thursday, 8 October 2020 at 9pm. He said he will address concerns regarding the 2021 National Budget.
There has been widespread opposition to the announcement of new taxes that will directly affect the middle class. Among these are taxes on the Christmas wage, Amazon, Netflix and other Internet-based services (20%), among other new taxes. The Labor Code exempts the Christmas wage from taxes and imports are tax-free up to US$200.
Meanwhile, the government has allotted RD$1.2 billion to fund political party activities. The budget also keeps the sludge funds for the legislators. Attorney General Miriam German has called for an increase in the budget for prosecutors.
The president of the Chamber of Deputies, Alfredo Pacheco says the legislators will seek consensus.
In Congress, ruling party senator Faride Raful and deputy Orlando Jorge Villegas have also expressed opposition to some of the budget chapters. The legislators acknowledge their role to act as check and balance of the Executive Branch.
Diario Libre editorializes on 7 October 2020 that there are only two ways to finance the national budget: borrowing or increasing taxation revenues. The editorialist argues that time is a constraint to a third option that is to reduce wasteful spending. The budget needs to be passed by 31 December 2020.
El Dinero interviewed economist Ivanhoe Ng Cortiñas who says the 2021 Budget is more of the same but with more taxes.
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Diario Libre
Diario Libre
Diario Libre
7 October 2020