Former Central Bank governor Guillermo Caram predicts that Dominicans will be paying more taxes in the near future. Caram says that the fiscal reform the government seeks to push through will mean new taxes because the government’s economic policy is inefficient when it comes to tax collections and government spending is backed by taking on public debt.
As reported in MetroRD, unless the government changes the equation it has been applying for the past 14 years, spending more than what it collects, it is impossible for the government to avoid increasing taxes in the proposed fiscal reform, Caram said when interviewed on Detalle Semanal talk show.
Caram, nevertheless, says that what is needed is a fiscal revolution so that patches and urgent corrections, which are always based on the government knowing it wants to spend, stop being used.
Caram called for comprehensive changes to the tax system to ensure it stimulates the economy for increases in goods and services and job creation.
“Lots of taxes are paid in the country, there is the Itbis at 18%, income tax, luxury tax, but they are not very effective when it comes to tax collections,” said Caram.
He said that the system has to be simplified and taxes reduced, and that government spending especially needed to be cut.
Caram said that between spending, subsidies and paying the debt, tax collections are drained and that what the government has doing is taking on debt to keep up with spending. He pointed out that the government has to take on international debt in order to get any kind of work done.
http://www.metrord.do/economia/reforma-fiscal-traera-nuevos-impuestos-segun-exgobernador-bc/ftwpfz—IPHJguPwWaOY/
