The economist Magdalena Lizardo favored the tax reform that the Government tries to reach a consensus and indicated it is necessary for the country to reach credible agreements that give predictability to public finances in the medium and long term.
The former director of the Economic and Social Analysis Unit of the Ministry of Economy, Planning and Development (MEPyD) warned that “the worst adjustment is that it is made in times of crisis and in some way We will not know how we end up being harmed, but certainly in the worst possible way ”.
In some statements offered on the subject of the tax reform that the Government of President Luis Abinader intends to apply, the economist indicated that Although the current circumstances of the pandemic make the situation complicated, it is very important that the country manages to reach credible agreements and that the reference point should be the National Development Strategy (END).
“The levels of deficit that we have and the levels of debts deserve to have predictability of how the adjustment will be made in the coming years, otherwise the adjustment will sooner or later arrive and often in a chaotic way,” said the expert on economic issues.
Added that the different national sectors must establish credible commitments that allow the adoption of measures to, on the one hand, finance the country’s needs to finance social services, infrastructures and support for the productive sectors, as well as measures to ensure the fiscal sustainability of all public sectors
Noted that Not only should the tax issue be addressed, but the issue of efficiency and quality of spending should also be addressed., the rationale for public service rates, the existing tax incentive regimes, and how everything that involves indebtedness and generation of savings capacities can be rationalized to deal with exogenous shocks.
Caution
Lizardo indicated that in relation to the reform proposal that has been circulated prefers to wait for the Government to raise its reform in a transparent way, expose your arguments and your approach to objectives not only in terms of taxes but also to rationalize spending and improve the quality of that spending.
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