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Caribbean & Central America - July 2011
DOMINICAN REPUBLIC: Tax reform approved, political costs emerge
Congress has approved a controversial but necessary tax reform bill introduced by the government of President Leonel Fernández. While deemed essential in ensuring that the Dominican Republic is able to address its current fiscal deficit and fight off externally created inflation, the reforms have sparked social discontent in a country that continues to suffer from the effects of high oil prices. This could prove a big problem for the ruling Partido de la Liberación Dominicana (PLD) ahead of next year’s presidential elections.
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