Petrol and tax agreements
Business representatives have agreed that the government will resort to the legal mechanism in Hydrocarbon Law 112-00 and index fuel prices to accumulated inflation for the past three years within a period of a year. The indexing had not been applied for the past three years, after petrol prices peaked at US$150 a barrel. The government is resorting to applying the law to generate funds to meet its current fiscal deficit. Petrol prices already increase gradually, but these will now be indexed to inflation in addition to the international price of petrol, and are expected to climb more rapidly over the next 12 months. The indexation will be retroactively applied by the Ministry of Industry & Commerce, and not the Ministry of Hacienda as proposed.
Business representatives held a two-hour meeting with the economic team and President Leonel Fernandez at the Presidential Palace yesterday. Central Bank Governor Hector Valdez [...]
Original post by WP-AutoBlog Import