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January 28, 2022
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Journalist Francisco Medrano: trust fund for Pedernales must be modified

Periodista Francisco Medrano: fideicomiso pro Pedernales debe ser modificado

Journalist Francis Medrano, considered that the escrow Pro-Flints must also be removed from Senate to modify the clauses of the contract that affect the power to collect taxes of the municipalities of that demarcation.

The communication professional affirms that this escrow establishes a “special tax treatment” that, among other things, frees beneficiaries of the project for the payment of taxes, fees, duties, charges and permits for construction, which in Medrano’s opinion is a fatal blow to the municipality.

Francisco Medrano made it clear that he is in no way opposed to the initiatives developed by the authorities for tourism development flints, but understands that it cannot be based on the decline of the municipalities, which suffer from budget limitations.

You may be interested in: Legal Department of PE announces law to regulate trust

He stated that with the eventual start of the tourism investments in Pedernales, the demand for services to the municipalities will also increase and they will not be in the economic capacity to respond.

In the same way, he warned that clause number 42.2 of the contract of the Pro-Pedernales trust contradicts the Constitution Dominican Republic that in its article 200, establishes that the municipalities may establish excise taxes in the area of ​​their demarcation, in addition to other articles of the Magna Carta itself that define the local administration as legal entities of Public Law, responsible for their actions, who enjoy own assets, budgetary autonomy, with regulatory, administrative and land use power.

“We cannot undress one saint to dress another,” said Medrano, considering that the local governments of Pedernales, Oviedo and the Municipal Districts of Juancho and José Francisco Peña Gómez will contribute their natural wealth for the development of tourism, but their authorities remain prevented from collecting excise taxes for the operations carried out there.

The Pro-Pedernales trust contract was approved in the Chamber of Deputies the same day it was approved Catalina Point and is awaiting sanction in the Senate.

Francisco Medrano proposed that, just as has happened with Punta Catalina, the Pedernales trust be subjected to a thorough analysis before its approval and ensure that it becomes a true instrument of development and opportunities for progress for the localities that will be impacted by the same.

What the contract says:

42.4.- TAXES ON CONSTRUCTION. The TRUST will be exempt from any tax established on the construction, rates, rights, charges and excise taxes established in Law No. 687 that creates a System of Regulation of Engineering, Architecture and related branches dated July twenty-seven (27) of year one thousand nine hundred and eighty-two (1982), and its regulation of application; as well as any other legislation that has been created or to be created, that affects the construction with the collection of taxes, rates, rights, charges or excise taxes, including any other taxes on construction services or other related services provided for the benefit of the project. , in the processing of construction permits, environmental feasibility and other government authorizations required to execute the works for which it was established. The payment of any fee or registration fee that may apply will be charged at the rate corresponding to contracts without amount. This will apply to the operations of associated collection companies through the electronic payment system.



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