New duty free imports under DR-CAFTA for 2015
Minister of Interior and Commerce Jose del Castillo Savinon says that the last phase of imports from the United States and Central America undergoing tariff elimination will be implemented in 2015, but this will be minor. The fiscal sacrifice is estimated at RD$200 to RD$300 million. The tax reduction will be of a final 3.2% as set out in the DR-CAFTA free trade agreement. He expects the losses in tax revenue to be compensated by an increase in consumption of goods, which means increased sales tax revenue. Del Castillo says that 88% of goods imported from the US and Central America are already at the zero tax level. Nevertheless, he pointed out that 2016 sees the start of a major phase-out of taxes on farm products, such as rice and garlic that will end in 2020 and 2025.
Source: DR1, Lisitndiario
Category: DR News |