Planned 50% Customs tax of ‘great concern’ for exporters
Santo Domingo.- Dominican Exporters Association (Adoexpo) president Alvaro Sousa on Thursday expressed “great concern” on the proposal in the 2017 Budget bill in which Customs charges a 50% ITBI (VAT) tax on raw materials, machinery and capital used by the industrial sector.
“This measure would eliminate the facility that allows rational industries to pay the added value tax at the end of the production process, and makes the Dominican export sector uncompetitive by limiting the cash flow of exporting companies, which would be undercapitalized by such a measure,” the export leader said.
He said Adoexpo will ask president Danilo Medina to strike that provision from the budget bill, “which would have a negative impact on the export sector of our country.”
“We must preserve the export sector’s competitiveness as an engine of the national economy and the social development of our country,” Sousa said and cited a statement from several associations that the proposal “would risk the investment climate, domestic production and exports and job creation in the country.”
“We expect the same to be removed from the bill of the budget as per commitments of the Government headed by president Danilo Medina, Congress and industry.”
Oct 7, 2016
Category: DR News |