Executive Branch submits proposal that modifies Pro – industry Law
SANTO DOMINGO. The Executive Power yesterday submitted three legislative proposals to the Senate among which is that which modifies several articles of the Law 392 – 07 on Industrial Competitiveness and Innovation, through which the government will extend for three more tax cycles the transitional regime to promote renovation and modernization of the qualified industries.
This modification has to do with article 50 of that law, which was clamored for by the industrial sector, which establishes a transitory regime of five years to promote the renovation and modernization of the qualified industries. This five-year period ended in 2012.
The initiative submitted by President Danilo Medina establishes that during this time the industries can apply accelerated depreciation, multiplying by two the depreciation percentages that are applied in each one of the accounts of the different categories of assets.
In addition they can deduct up to 50% of the net taxable income of the fiscal exercise of the previous year for the investments carried out in the purchase of machinery, equipment and technology.
The proposal would also modify article 20 which establishes that the raw materials, industrial machinery, and capital goods for the industries will be exempted from the collection of the ITBIS at the Directorate General of Customs (DGA), as well as the other capital goods and raw materials which enjoy a 0% tariff.
If this legislative proposal is approved industries will have to pay the DGA the rate of 1% of the ITBIS applied to the import of raw materials detailed in article 24 of law number 557 – 05. “Exempted from the payment of the ITBIS at the Directorate General of Customs (DGA) are the import of industrial machinery and capital goods used in the production process; as well as the producers of exempted goods that benefit from the treatment ordered in paragraph III of article 24 of law number 253 – 12,” the new law says. The paragraph I of the article referred to says that the 1% of the ITBIS made to the DGA can be deducted from the gross tax within the same period in which said payment has been made.
In the letter sent by President Danilo Medina, he guarantees that the modifications as presented were agreed upon with the public and private sectors.
Regarding the Board of Directors of PRO – Industria, the governing body, the legislation adds among its members the director of INFOTEP and increases the representation of the industrial associations from 5 to 7 members.
The legislation would eliminate the procedure for the selection of the Director General of PRO – INDUSTRIA because now that person would not have to be chosen from a list supplied by the Board of Directors.
Yesterday, the president of the Association of Herrera Industrial Companies (AEIH), Victor Castro, was pleased that the President of the Republic would submit this project because it was something that the industrialists had been demanding.
“We are very happy that the President as finally decided to send this project to expand the facilities of the industries,” he said.
He continued by saying that this project has been studied an agreed-upon by the different industrial associations.
On the other hand, the Executive Power sent to the Senate a legislative proposal which authorizes the increase of the capital of the Banco de Reservas from RD $3.5 billion to RD $5.5 billion.
This increase would be done through the reinvestment of dividends for RD $2.0 billion charge to the earnings produced in the year 2013.
According to article 2 of the proposal the Banreservas could carry out an additional increase of its capital up to an amount of RD $4.5 billion charged to the projected earnings for the years 2014 and 2015. If they use this additional increase in the capital the state bank will have its capital increased to a total of RD $10.0 billion.
The Executive Power also submitted a legislative proposal which modifies article 5 of law number 57 – 07 on Incentives for the Development of Renewable Energy and there Special Regimes.
The proposal suggests that the installations which produce energy from biomass should use at least 50% of this material as the primary source of energy.
Category: DR News |