An agreement on the much-anticipated tax reform legislation could not be made between senators and business proponents, yesterday. In spite of having called the meeting with the country’s lawmakers, the businesspeople arrived at the table with no new proposals. According to Listin Diario reporter Manuel Azcona, the head of the Senate Finance Committee, Alejandro Santos, met with representatives of the business community, headed by Elena Viyella de Paliza, Frank Castillo and Ivan Brugal. At the end of the meeting, Santos told reporters that the new tax package could not be ready by the 15 December deadline requested by the business associations, unless Congress were to participate in the negotiations. He said their involvement was necessary and they would not simply raise their hands in approval. The meeting, which started late, also began with some heated words between senators and the business representatives.
The business groups argued that they were perfectly willing to reach an agreement to find solutions to the current economic crisis. They said that while there was a need for consensus, the senators had to remember that the resources for any solution would come from the business community itself, not from the good intentions of Congress or the government. Santos told reporters that the business community would have to submit some fresh ideas, as they did when they established the Transitory Voluntary Contribution in place of the 5% tax on exports.
As reported in Hoy newspaper, the government yesterday said it would apply the 5% tax on exports, arguing that this is a requirement of the International Monetary Fund. The business community has requested that the Chamber of Deputies reject the tax on grounds that it is counterproductive. The business community wants the government to reduce its own unproductive spending.