26 of 27 senators present for the session approved the first reading on a bill submitted on Monday, 25 October 2021 with measures to eliminate tax exemptions to reduce government spending so there not be a need to raise taxes. The bill was sent to the Hacienda Committee for its recommendations.
Only the president of the Senate, Eduardo Estrella (DxC-Santiago), Faride Raful (PRM-National District) and Antonio Taveras (PRM-Santo Domingo) did not sign the bill, as reported in the media. These three are also the only three in the Senate that do not participate in the fund that is mostly dubbed the “barrilito.”
The senators propose reducing tax exemptions and benefits for legislators, other government officers and private companies, too. The cuts would affect the tax exemptions that the judges of the Constitutional Court, Supreme Court of Justice, Attorney General Office and foreign service officers are granted.
The bill also sets a limit of US$30,000 to the vehicles that can be assigned to government officers, with the exception of President and Vice President of the Republic. At present, senators and deputies are authorized by law to import two tax-free vehicles every four years, with no limits to the cost of the vehicle nor the type of vehicle.
The bill also orders that no government officer can make more than the President of the Republic. The reduction would affect the high-ranking officers at the Central Bank, Monetary Board, Superintendency of Banks, Superintendency of Reserves, Superintendency of Securities and others such as Pro Competition, the Ombudsman, Tax Agency, Ministry of Finance, electricity sector boards, among others.
The bill says there is an excess spending on advertising and propaganda in government and orders a reduction from spending of RD$4.8 billion to RD$2 billion in 2022 and that the new amounts be effective as of the 2022 National Budget.
The bill coincides with the airing of a special investigative report by Alicia Ortega that focused on major irregularities in the use of around RD$300 million a year allocated to senators for their Social Compensation Fund. The investigation turned up countless violations of the social compensation fund law and multiple incidences in which the journalist ascertained that the beneficiaries did not receive the funds and payments were made to companies owned by the senators themselves. The Alicia Ortega report findings have been the trending topic on social media for the day.
The senators have been defending their right to their own tax exemptions and other benefits by openly saying they are not the only that get the big tax cuts, the high wages and perks.
In a press conference called on Tuesday, 26 October 2021, the spokesperson for the senators said: “We propose to reduce public spending to a minimum by reducing the preferential treatment to several sectors, including tax exemptions, deductions, credits and deferred payments in 39 laws, which would amount to RD$217 billion.”
A report in Diario Libre on 27 October indicates that tax exemptions authorized to all government employees, including diplomats, has been less than that granted to the legislators.
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DR1 News
27 October 2021