DGII: First half surplus of RD$3.0 billion
BAVARO. The director of the General Directorate of Internal Taxes, Juan Hernandez, revealed that during the first half of 2012, the state agency collected more than RD$31.0 billion. This represents a RD$3.0 surplus in relation to what was estimated, which was RD$28.0 billion.
The agency had forecast a RD$5.0 billion deficit, but because of the sale of the shares of the Dominican National Brewery (CND) to Brazilian businessmen, the result was positive.
Hernandez made it clear that the increase in the collections, as the result of the sale of shares of the Brewery was not a lucky deal, but rather it was a case of the forecast being very optimistic, which is to say that "income was over-estimated." However, without the sale of those shares, they would have had a deficit.
"Of course, they did now just come and bring RD$8.0 billion pesos, that is not true. It began very low and it reached that amount through the efforts of all of the Tax Administrative personnel," Hernandez explained.
He recognized, nevertheless, that the budget was over-estimated, and the lucky sale of the shares of the Brewers gave them a surplus. He said that the collections are growing a lot but the Budget will not be fulfilled, and that is the problem.
Likewise, Hernandez, while he presented the report of his 2004-2012 administration of the DGII, said that in 2004 the DGII, as the collection entity went from collecting 48% of the state income to 74% of the total income in 2011. Since 2004, the DGII has had an annual growth of 22.5% in the internal tax collections.
He gave details of how in 2004 they collected RD$60.63 billion and at the close of 2011, the collected RD$206.15 billion
In another vein, Hernandez said that the law on salaries in the public administration is understandable, but the DGII feels that the proposal was formulated with taking into considerations the different institutions.
"The law on public salaries talks the public administration to be "the last of the mediocre."
With that law they use a 30 year old mechanism and they do not measure the current value. He said that this does not work and that what they should do is take advantage of what other countries have done recently.
"That law is today obsolete, and is highly risky for the Tax Administration and could convert the DGII into a mediocre agency," said Hernandez, after saying that the Law of the Public Service which covers many institutions, must be respected.
"Of course, they did now just come and bring RD$8.0 billion pesos, that is not true. It began very low and it reached that amount through the efforts of all of the Tax Administrative personnel," Hernandez explained.
He recognized, nevertheless, that the budget was over-estimated, and the lucky sale of the shares of the Brewers gave them a surplus. He said that the collections are growing a lot but the Budget will not be fulfilled, and that is the problem.
Likewise, Hernandez, while he presented the report of his 2004-2012 administration of the DGII, said that in 2004 the DGII, as the collection entity went from collecting 48% of the state income to 74% of the total income in 2011. Since 2004, the DGII has had an annual growth of 22.5% in the internal tax collections.
He gave details of how in 2004 they collected RD$60.63 billion and at the close of 2011, the collected RD$206.15 billion
In another vein, Hernandez said that the law on salaries in the public administration is understandable, but the DGII feels that the proposal was formulated with taking into considerations the different institutions.
"The law on public salaries talks the public administration to be "the last of the mediocre."
With that law they use a 30 year old mechanism and they do not measure the current value. He said that this does not work and that what they should do is take advantage of what other countries have done recently.
"That law is today obsolete, and is highly risky for the Tax Administration and could convert the DGII into a mediocre agency," said Hernandez, after saying that the Law of the Public Service which covers many institutions, must be respected.