The economist and militant of the Fuerza del Pueblo party, Haivanjoe NG Cortiñas suggested today to the Government temporarily suspend the payment of direct and indirect taxes in the eight provinces affected by the passage of Hurricane Fionaas an action that allows shoveling the hardships that they are currently going through.
He recalled that the government, through presidential decree 537-22, declared emergency purchasing and contracting procedures for these provinces, which turn out to be the most affected by the atmospheric phenomenon: La Altagracia, La Romana, El Seibo, Samaná, Hato Mayor, Maria Trinidad Sanchez, Duarte and Monte Plata.
NG Cortiñas maintained that in accordance with this decree, the President of the Republic must take the initiative of law to that the National Congress declare the indicated provinces in a temporary and exclusive state of emergency and protected by article 265 of the Constitution, can free the aforementioned provinces from paying taxes for a certain period of time, which may well be two months.
He explained that, in the Dominican tax structure, geographical and by type of taxes, the indicated provinces only contribute around 4.9% of the total direct taxes and 5.0% of the indirect onesso he said that "the fiscal sacrifice is insignificant and would be compensated by the social and economic assistance that the measure implies, until the communities can recover in what concerns the private part".
He explained that with this, the government would be temporarily releasing residents of negatively impacted communities from the payment of taxes for an amount of around RD$1,811 million for indirect taxes and RD$1,557 million for direct taxes, both per month.
"Altogether the fiscal sacrifice of the central government on the side of current income would amount to RD$3,368 million per monthwhich can be deducted from current items of the 2022 budget expense, such as advertising and other items for the acquisition of goods"he indicated in a note sent to the media.
He added that the moment is to go to the immediate aid of the suffering population and that a measure such as the one he suggests would provide liquid resources and greater purchasing power for consumption and investment that requires the recovery of the geographical areas affected by the fury of natural phenomenon.
