|
|
|
|
|
|
|
|
|
Source of No DR-US free trade news DR1 clarifies that Diario Libre newspaper is the original source of the brief published yesterday on the unlikely opening of DR-US trade treaty talks. In its 25 July issue, the newspaper translates a written note received from the White House press secretary office after an inquiry was made to Ari Fleischer regarding a Listin Diario news story that reported President Bush had agreed to open free trade talks with the Dominican Republic. The White House release says that the US Government is committed to negotiate the Free Trade Agreement of the Americas. Talks with the Dominican Republic would thus continue to be held under the umbrella of the broader commercial treaty. The Free Trade Area of the Americas would progressively eliminate barriers to trade and investment among 34 regional countries as of 2005. |
|
President announces tax correction not increase President Mejia insists there will be no more new taxes. A new bill that the government says corrects the tax law rather than increasing taxes, was sent to study by a commission made up of legislators from both the Senate and the Chamber of Deputies yesterday. Mejia says the bill will correct distortions in the present tariff and tax law. The bill fixes the 1.5% tax on gross sales that would have expired in December 2003. It also levies a 12% luxury consumer tax on air travel and insurance premiums. The government proposes to lower the tax on imported alcohol beverages to 35% from the present 45%. The bill also establishes an extension of the deadline for local residents to benefit from the Fiscal Amnesty provision. Last year the amnesty program produced upwards of RD$1.6 billion for the state. But the Executive Branch argues that more did not take advantage of the bill that enables property owners to declare their assets and not have to pay overdue taxes because the Inheritance Law had not yet been amended. The new bill would change Inheritance & Donation Law 2569 reducing the up to 50% tax on inheritances to 3-15% and to 8-25% taxes in the case of donations made by persons still alive to their descendents. The bill also creates a fund that would receive 0.5% of the total tax revenues. The money would be used to finance the operation of tax collection offices and provide monetary incentives for tax department employees in order to curb tax evasion. The Executive Branch is lobbying for the bill to be passed prior to the end of the present congressional term. In the new Congress that will be sworn in 16 August, the two opposition parties together could overrule any Executive Branch bill that would increase the tax burden on citizens. With the demise of PRSC party leader President Joaquin Balaguer, PRSC legislators are expected to not be as complacent with Executive Branch requests. |
|
Businessmen reject keeping 1.5% Spokesmen for the business community unanimously reject the government plan to permanently fix the 1.5% tax on gross sales. Ignacio Mendez, of the Federation of Industrial Associations said that the tax promotes evasion and a lack of transparency in accounting and income reporting. He said it complicates the existence of companies already doing business and will discourage the opening of new businesses. He said it is an obstacle to export competitiveness. Franklin Muñoz, speaking for the insurance sector, said that the new 12% tax on insurance premiums would be a mortal blow to the insurance sector. Ernesto Martinez, president of the National Organization of Commercial Businesses (ONEC) said that contrary to the goal of increasing government tax collections, the changes in the tax law would bring a decline in revenues as businesses scramble to find ways to avoid paying the increased taxes. Jose Antonio Najri, the out-going senator to Santo Domingo, proposed that instead of the proposed package, the government expand the number of items taxed by the ITBIS, while at the same time reducing this tax from 12 to 10%. He favors the dropping of the 1.5% on gross sales calling it an obstacle to trade and production. |
|
Government triples tolls The Mejia administration says it will not increase taxes this year, but the Ministry of Public Works announced a tripling of tolls paid at the three leading Dominican highways. As of next Thursday, 1 August tolls go up 200%. Cars, pickups and four-wheel sport-utility vehicles (jeepetas) will pay RD$15, small buses RD$25, large buses RD$30, two axle trucks RD$30 and three or more axle trucks RD$50. Last year, with RD$5 tolls, the government collected RD$268 million. |
|
Extraordinary legislature convened President Hipolito Mejia convened Congress to continue on the job in order to pass the Monetary and Financial Code, and other matters pending in Congress. The President called the legislators to extend the present work session another two weeks, from 29 July to 15 August. President Mejia sent the agreement that establishes the Consejo de Cooperacion Aduanera, a board that would unify local customs regime with that of other regional countries to Congress for study next week. Likewise, the President sent to Congress a treaty on intellectual property copyright, the Tratado de la Organización Mundial de Propiedad Intelectual sobre Derechos de Autor. El Caribe newspaper editorial today criticizes the present rush of the legislators to approve in the next 15 days all the loans and bills sent by the Executive Branch that are still pending. The term of congressmen ends on 15 August. The next congress is not expected to be as complacent as this one to Executive Branch bills. |
|
More on how tax payers money is used Hoy newspaper reports that an audit to the finances of the Dominican Port Authority showed the government department had nine different payrolls and an excess of RD$408.3 million in the personal spending of its employees. The same government audit showed that at least 31 employees, hired after 17 August 2000 are related to Anibal Garcia Duverge, a former director of the department. The audit, carried out from February to April 2002, shows many checks were irregularly cashed to benefit third party persons. These include one for RD$860,000 deposited in the personal account of a Wilson Frias in the Banco Popular in February and another for RD$480,000 that was deposited in the joint account of Felix Morban/Marcos Minaya in the same month. It also determined that thousands of pesos were spent on snacks, wines and other alcoholic beverages, such as a RD$136,231 check paid to the Super Delicatessen Los Rios. |
|
Millions in loans for the Plan Renove El Caribe newspaper reports that the Chamber of Deputies passed seven international loans adding up to US$182 million to finance the Plan Renove, the program that will provide new vehicles for transport union members. Powerful union directors, including Juan Hubieres of the Federacion Nacional de Transportistas La Nueva Opcion (Fenatrano) and Antonio Marte of the Consejo Nacional de Orgnizacion del Transporte (Conatra), and the directors of the Federacion Nacional de Transporte Dominicano (Fenatrado) that groups truck owners, pressured and obtained the passing of the loans prior to the end of the present legislature. The money will be used to purchase 4,512 new units. The dealers importing the vehicles are Viamar, Magna Motors, Hyundai Company, Delta Comercial and Alpha Motors. These will be financed by the Banco Nacional de Desenvolvimiento Economico (Brasil), Kemix Bank of Korea, the Toyota Corporation and the Agencia de Financiamiento Industrial (Finame), according to El Caribe. The Plan Renove, a wheeling and dealing operation that has been repeatedly accused of widespread corruption, has been under discussion for the past two years. The plan even calls for government-guaranteed financing for the purchase of trucks and forklifts for the influential union members. El Caribe editorial criticizes the passing of the plan by the legislators describing these as gifts since it says the union members will never have to pay for the over US$170 million price tag. Instead, Dominican taxpayers will pick up the bill. |
|
Spotlight on the government’s train Re-elected deputy, Pelegrin Castillo raised a red alert regarding the Puerto Rican company that would receive a concession to build a train linking Haina in the Province of Santo Domingo with Santiago. Despite the high cost of the project, no feasibility study has been carried out so far. But yesterday, the US$300 million highway concession was on the agenda of the Chamber of Deputies. The president of the Chamber of Deputies, Rafaela Alburquerque introduced the bill saying that an unnamed ambassador had repeatedly called her to stress the importance of the project. El Caribe reported that this motivated Castillo to speak up and say that the ambassador making the calls was Hans Hertell, of the United States, who had ties to the Puerto Rican company. Hertell is a Puerto Rican construction entrepreneur. This is his first ambassador position. Castillo said that according to his sources the company that wants to get the Dominican concession has a federal legal case against it in Puerto Rico because of the many construction vices in the works it has completed in Puerto Rico. The Chamber of Deputies postponed passing the concession. The train project was sent to review by a commission. The Chamber of Deputies yesterday approved a US$25 million loan for the purchase of 12 coastguard ships, and the construction of six coastguard ships and a US$7 million loan to equip the Dominican Social Security Institute Hospital Presidente Estrella Ureña. |
|
RD$32 million to pay retirement plans El Caribe said that the Senate approved yesterday the request made by the Executive Branch to transfer RD$32 million from the budget of the Ministry of Education to the Ministry of Finance. The money would be used to pay for the retirement plans for teachers. |
|
New constitution The 2002 Constitution is now in effect. The constitution now enables the President to be re-elected for a single consecutive period and it eliminates the closed voting stations. All other articles of the 1994 Constitution remain the same. |
|
|
|
New municipal headquarters Diario Libre reports on the provisional locations of the headquarters where the new municipalities that were created when the National District was split into four will be located. Santo Domingo West: Plaza Isabel Aguiar (Avenida Isabel Aguiar corner Avenida Las Palmas) Santo Domingo North: Plaza Pública Villa Mella Santo Domingo Este: Old spermarket and club of employees of Molinos Dominicanos Boca Chica: To be located in a building originally constructed for a hotel. |
|
|
|
Sugar mills can sell energy President Hipolito Mejia authorized issued Decree 557-02 that authorizing sugar mills meeting the requirements of Energy Law 125-01 to sell energy. The President also appointed a committee that will design a program to modernize and mechanize the farming and production of sugar cane. |
|
|
|
Vice President feels ready to govern Vice President Milagros Ortiz Bosch, who has been acting President on the 30 occasions when President Mejia has been abroad, said that she feels ready to govern if chosen by the Dominican people in the 2004 presidential election. She told Listin Diario journalists that she feels she has the needed experience, the honesty, the audaciousness and the social and economic knowledge to rule the country. The also Minister of Education said that now what is most important is that the ruling party consolidate the position of the Mejia administration. Now the party needs to decide who will be the presidential candidate for the 2004 elections, she said. She urged the party to unite so as not to repeat negative experiences when internal divisions lead to its defeat in past presidential elections. To her credit, Ortiz has held tenders for the purchase of goods and services for the Ministry of Education and has arrested those denounced for corruption when acting as President. She is also known as a skilled negotiator in her quest for a long term improvement of the quality of public education. After Mejia, Ortiz Bosch is ranked as the strongest presidential candidate-hopeful in the PRD. |
|
|
|
Move to promote culture tours Ramon Prieto, president of the National Hotel & Restaurant Association (Asonahores), favors an increase in culture tours in the Caribbean. He spoke at a seminar organized by Asonahores, the Santo Domingo Hotels Association, and the ministries of Tourism and Culture. He said that Asonahores has promoted the sustainable development of tourism, diversification of source markets and ecotourism. He said that the time has come to recognize the wealth of the cultural heritage of the Caribbean and our country and begin offering culture tours. |
|
|
|
Bloomberg in Santiago New York City Mayor Michael Bloomberg arrives today at 10 am to Santiago. On his agenda is a morning visit to the Arturo Grullon Hospital where he will donate medical equipment. At noon, he will have lunch with business and government officers at the Gran Hotel Almirante. Next he will visit the New York Mets training camp in La Vega, about half an hour away, where he will donate baseball gloves, bats and balls. In Santiago, he is scheduled to meet Mayor Hector Grullon Moronta and Mayor-elect Jose Enrique Sued. This is Bloomberg's second visit to the Dominican Republic. When he was still New York's mayor-elect, he first visited Santo Domingo on 27 November 2001, shortly after the 12 November AA587 flight crash. At that time, he visited to pay tribute to the homeland of the immigrants who had died in the crash. It was his first trip abroad after being elected. At the time, Bloomberg also met with President Hipolito Mejia to discuss the issues of Dominican immigrants in New York. Observers say that Dominican political clout is increasing in New York, as more Dominicans are also US citizens and have become more involved in community affairs. |
|
|
|
Basketball clinics Dominicans Luis Felipe Lopez and Venezuelan Oscar Torres will be in Santo Domingo for clinics as part of the Tour Latinos Unidos 2002 of the National Basketball Association. Lopez, a native of Santiago, plays for the Minnesota Timberwolves. Torres plays for the Houston Rockets. Clinics will be held at the Club Maruricio Baez. |
|
|
|
The contents of this webpage are copyright © 1996-2009. DR1. All Rights Reserved. |
