In the Dominican Republic, it is “extremely difficult, if not impossible,” to conclude a fiscal compact as stipulated in the national development strategy and the wishes of the government, because both the business sector and the middle classes are unwilling to bear its tax implications, said.. last night the sociologist Rosario Espinal.
“There will be no financial deal here because there is no way to set it up,” Espinal said, adding that “every government will delay it.”
In his interview on “McKinney”, by Color Vision, the sociologist asserted that there would be no financial deal in this country because business sectors live on two things: “cheap labor and tax breaks. That they give him the opportunity not to pay taxes.”
He noted that the tourism and free zone sectors are “highly protected” so that they do not pay taxes and their executives assure that if they do not give them incentives, the companies leave the country.
Espinal said that this government started talking about tax reform and that it only hoped to sign the electricity agreement to advance this issue, but the energy agreement was signed and no one witnessed the first important meeting of the various sectors discussing it.
“On the contrary, the government has removed the topic of tax reform from political discourse,” Espinal noted, but stresses that the day they can’t postpone it any longer, “they will introduce new taxes.”
He warned that business sectors will not be profitable financially, while the middle classes in the formal sector of the economy are sacrificed by paying taxes, so he understands that they can no longer be sacrificed.
“These are the people who have the most voices to complain,” said the expert on social and political issues.
Espinal pointed out that “the problem is that this government and any government will sit in all those sectors, and in the end they will come out happy with a financial agreement, it is very difficult, and we are not saying that it is impossible.”
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