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Dominican Republic leads LatAm in Web purchases, but formal retailers lose

Santo Domingo.- Dominican Republic’s formal business sector could lose as many as 100,000 jobs over the next three years on distortions from the tax-exempt Internet purchases under US$200, as stated in Decree 402-05.

National Retail Businesses (ONEC) president Ernesto Martínez said they are concerned with what could happen if what he calls a “distortion” isn’t corrected, because in his view creates unfair competition against  those retailers who must pay taxes, labor costs, fees for services, among others, by those who’ve taken advantage of the tax break.

He said internet purchases have jumped 30% yearly, which leads to losses of as much as RD$5.0 billion in tax revenue. “If this trend continues, revenue losses could reach 40 billion pesos over the next five years. We’re talking about nearly half of the funds allocated to pay the public debt.”

Quoted by the Corripio media group, Martinez said a “tax inequity” has been created in Dominican Republic, since the importer who brings a product must pay 18% ITBIS, a tariff of up to 40%, and in some cases a selective tax as high as 80%, however the same article, if it doesn’t exceed US$200, can enter the country tax free.

He added that 1.41 percent of all retail purchases in the country are on the Web, the highest in Latin America.

Source: DT

Category: DR News |

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Last updated March 29, 2017 at 12:43 AM
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