Carrasco pointed out that if the electricity deficit is corrected and public spending is reduced, a reform is not needed
Economist Mercedes Carrasco described the proposal as tax reform of the Government of Luis Abinader as regressive, aggressive and abusive.
He explained that it is regressive because it relies more on indirect taxes, that is, it taxes those who have the least more, since 72% of the taxes that would be collected would be indirect taxes.
He considered her aggressive because introduces taxes on 120 products in the food basket that were not recorded and that never before in history has so much aggressiveness been seen both in the number of products and in such a high rate of 18% of ITBIS.
Likewise, it understands that this Fiscal Modernization law proposal submitted to the National Congress by the Government is abusivebecause it rests on the most vulnerable and the middle class, given that 82% of the income will be paid by them.
Electrical sector
About him electrical sectorCarrasco indicated that this is the Government’s Achilles heel and what causes a 40% deficit are the transfers that are granted to the EDES for transmission and distribution losses. He indicated that the Budget has allocated RD$92,000 million for this and those electrical losses explain 40% of the deficit.
He even pointed out that If the electricity deficit is corrected and public spending is reduced, no reform is neededbecause the key is to spend well and better, be more efficient and pursue evasion, which has 4% of GDP.
“The alternative measure is to reduce spending, just by reducing the public payroll by RD$130,000 million, we would have all the resources of the reform. The payroll increased from 2020 to date by more than 133,000 million pesos and the reform seeks RD$122 billion. The resources are there. And there are 100 billion new employees,” he said.
Carrasco offered these details at the event “Fiscal Dialogue: Challenges and Opportunities”, where economists Germania Montás, Magín Díaz and Jaime Aristy Escuder also participated, organized by the senator of the National District, Omar Fernandez.
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