The Listín Diario newspaper reported that the government is expecting a 20% increase in tax revenues for 1999. In 1998, the government budgeted income for RD$38,000 million. Forecasts are that the income in 1999 will surpass RD$46,000 million. On the other hand, the Secretary of the Presidency Danilo Medina said that the tax reform the government has proposed will not increase taxes, it will only compensate the proposed decline in import taxes. The government wants to increase the sales tax and decrease the tariffs on imports. The proposal has been rejected by opposition political parties and by Congress. The higher tariffs make Dominican products less competitive abroad.
