2000News

Smoke screen to lower resistance to tax package?

Whether intentional or not, the timing couldn’t have worked better for the government. The congressional surprise of a call for the National Assembly (Senate and Chamber of Deputies) to convene eclipsed resistance to the "paquetazo". The "paquetazo" is the bill that will levy new taxes on the Dominican people to bolster the National Treasury. The Senate passed the bill on Monday, 11 December. Instead of talking about the new taxes, everyone in turn is talking about the constitutional reform. Three of the four morning newspapers dedicated their front-page headlines to the congressional summons, barely giving space to the tax issues. To make the matter seem even more urgent, the promoter of the bill Darío Gómez (PRD-Santiago Rodríguez) announced that the Constitution would be modified prior to Christmas Eve. President of the Senate Ramón Alburquerque defended the right of the senators and deputies to legislate, regardless of the opinion of the civic society that has rejected constitutional reform at the present time. Newspapers, owned by major financial groups for the most part, only alloted front page space to oppose the part of the new taxes bill that sets a 4% monthly ceiling on credit card interest charges by the banks and to criticize the governmental intent to levy a 12% value-added tax on advertising. The tax bill is now in the Chamber of Deputies. The Listín Diario says that the deputies yesterday were so excited about the new constitutional reform that they were only able to study one point of the tax and tariffs reform bills. What is being primarily opposed regarding the Constitutional Reform is that it is extemporaneous. There are more important matters on the congressional agenda. Likewise, there is a concern that the expressed interest of a majority of congressmen to remain in their posts beyond 2002 would be passed. The holding of congressional election at midway between the presidential election has been a way voters can express their approval or disapproval of the government without having to wait four years. The constitutional reform agenda proposes that the presidency, congressional positions be extended to five years as of 2004. But political analysts say that once the discussions begin it is possible that the congressmen will rule in their own favor and grant themselves the two or three extra years in office. Senators present that did not sign the summons to reform the Constitution were: Ginette Bournigal de Jiménez (PRD-Puerto Plata), Enrique Martínez (PLD-La Romana), Bautista Gómez Rojas (PLD-Salcedo), Ramón Sánchez de la Rosa (PRSC-La Altagracia), José Hazim Frappier (PRSC-San Pedro de Macorís) and Gerardo Apolinar Aquino (PLD-El Seibo).