Government Not Contemplating Tax Reform

The government of President Leonel Fernández is maintaining “absolute control of the national financial situation” despite the international economic problems caused by rising fuel and food prices and therefore is not considering a tax reform for the moment nor in the future. This information was made public in a press conference give by Finance Minister Vicente Bengoa who insisted that despite the global crisis, the Dominican economy is under control and will continue as such without major difficulties.

…he opposed those who propose tax decreases on airplane fuel and gas-oil, stating that the government will lose 15 billion pesos in tax revenues in such a move.

Bengoa added that in the first semester of this year, economic authorities in the government drew up the national budget exactly as planned, according to the President’s Office of Information, Press and Publicity.

He went on to say that he opposed those who propose tax decreases on airplane fuel and gas-oil, stating that the government will lose 15 billion pesos in tax revenues in such a move.

He explained that the government receives 11.700 billion pesos in yearly taxes on gas-oil and 3.300 billion from airplane fuel tax, resources that are used to service the country’s foreign debt.