Is it just thievery?

Golfer

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Apr 7, 2002
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Am I missing some good explanation as to why government tariffs and taxes are so high on imported automobiles? Is the motive to keep down the number of cars on Dominican streets? To hold down imported gasoline usage? Has the government decided that only wealthy Dominicans should own automobiles because they are more likely to be properly registered, maintained and safely operated? Are these exorbitant fees common in other Caribbean nations or, is it just a uniquely Dominican money grab. Anyone have the "official" explanation.
 
Jun 18, 2007
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www.rentalmetrocountry.com
Am I missing some good explanation as to why government tariffs and taxes are so high on imported automobiles? Is the motive to keep down the number of cars on Dominican streets? To hold down imported gasoline usage? Has the government decided that only wealthy Dominicans should own automobiles because they are more likely to be properly registered, maintained and safely operated? Are these exorbitant fees common in other Caribbean nations or, is it just a uniquely Dominican money grab. Anyone have the "official" explanation.

As has been mentioned in many other topics and now again. Who do you think pays for the jepetas owned by government officials?
 

cobraboy

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Jul 24, 2004
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Am I missing some good explanation as to why government tariffs and taxes are so high on imported automobiles? Is the motive to keep down the number of cars on Dominican streets? To hold down imported gasoline usage? Has the government decided that only wealthy Dominicans should own automobiles because they are more likely to be properly registered, maintained and safely operated? Are these exorbitant fees common in other Caribbean nations or, is it just a uniquely Dominican money grab. Anyone have the "official" explanation.
Auto import is a huge cash cow for the gubmint. Huge.
 

suarezn

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Feb 3, 2002
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This is what happened with this...back in the days (20+ years ago) this was about maybe the number one source of income for the government. Sales taxes (ITEBIS) were very low and almost nobody paid any other type of taxes. From that perspective import taxes were a good thing, because in reality the people being taxed were the ones with higher incomes who could afford to pay the duties to import stuff...

Over the years though ITEBIS was raised to 16% and the government became very good at collecting form everyone in one form or another...not surprisingly though they never lowered import taxes thus they remain very high. Even after CAFTA which is supposed to phase them out all they've done is replace whatever they lowered as import duty with a much higher "vehicle registration" tax...so they continue to rake it in...
 

CFA123

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May 29, 2004
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Just doing a quick google & picking some random countrie... some of the info might be wrong as I didn't research heavily for exceptions.

Importing car to Canada from U.S... Can$60,000 car has Can$4,000 added (about 6.5%) There's no duty from U.S. or Mexico now, not sure what it was before. 10-25% duty on other countries depending on classification of car.

Importing car to Australia... 32% duty.
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Importing cars to U.S. cars 2.5%, trucks 25%, motorcycles 2.5%. Most Canadian manufactured vehicles enter duty free.

UK... 10% import duty, 17.5% VAT
 

cobraboy

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Jul 24, 2004
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My memory may be faulty, but didn't the DR gubmint add a 17% "first time registration fee" at the same time duty was dropped on American cars under DR-CAFTA.

Those guys are slick, huh?:cheeky:
 

J D Sauser

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Nov 20, 2004
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A country which is basically an island (OK, SHARED island), virtually no REAL economy (good mix of production, manufacturing, commerce etc), a hard time to get a tight grip on income (most with a documented regular income are gov. employed anyway) CUSTOMS would seem a nice way to steer some money into state accounts. Especially on an island, where you can't sneak stuff in easily, moreover if it's as big and bulky as a car or preferably a jeepeta which also requires "papers" so to be able to hit the road "legally".

Short version; it's EASY, that's why.

... J-D.
 

cobraboy

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Jul 24, 2004
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I thought it was quite interesting that the local Newspapers were saying that American cars will be allowed in duty free now while others have pointed out that automobiles were left out of DR-CAFTA when it was signed. I know the reporting is bad here, but how could they be that far off?
Could be.

I don't know the exact stats, but I speculate that MOST cars in the DR came in from the states, and many of those foreign cars were made in the states, allowing them to fall under DR-CAFTA.
 

PICHARDO

One Dominican at a time, please!
May 15, 2003
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Could be.

I don't know the exact stats, but I speculate that MOST cars in the DR came in from the states, and many of those foreign cars were made in the states, allowing them to fall under DR-CAFTA.


Actually, most cars in the DR are from Japan not the US...
We used to call them "Version Japonesa/Americana" when talking or dealing with a given brand sold in both sources.

Out of a 100% import figures the Asian provided vehicles will take over 68% of the slice, while US/others will share the rest coming into the DR.

The same happens with spare parts! Most our spares come directly from Japanese/Asian suppliers. Which are considered to have a higher quality/value than their US counterparts.

Depending on brand/country of manufacture, cars command higher or lower rates than actual blue book values in the source nations.

Models for which spare parts are not too common or on a per order basis, regularly see their actual street value fall much lower than their actual real value in other markets. This is because most vehicle owners can't afford to have their main form of transportation idling while the parts come in, while other models are abundant to pick a good value from local spare suppliers.

The only vehicles that break away from this are high end luxury ones, the rest considered to be regulars are ruled by the DR system...

The now applied first registration tax for vehicles, is the answer developed for the expected removal of all tariffs and VATs on imports soon enough. Since we can't just allow US manufactured vehicles to enter duty free, while exacting tariffs on others.

We're in the process of creating a spreading charge over registration for newly imported vehicles, where they will pay a descending tax rate for 5 years, instead of a single payment. The full payment will still be available for those that can afford it, but a least 5 yearly spread will be made available for others with small convenience fees for the option.

We're working out the kinks behind total loss behind such system, so that insurers will also cover the gap (gap insurance for registration taxes) if the vehicle is totaled of lost before the full tax is collected long term.

Once we're able to remove the long standing practice of undervaluing car sales amounts, in order to avoid paying the taxes by buyers during title transfers; we'll be able to remove the first registration tax completely.

We're currently thinking on a way to have insurers mandated to cover loss for theft or accidents, taking the sales tax figure recorded for titling the vehicles. In a way making it a huge risk and gamble for vehicle owners, to underreport the actual amount paid for the transaction in the first place.

Believe it or not, we lose more on internal car sales between private citizens and dealers than we collect on tariffs or Vats on imports today.
 

Chip

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Jul 25, 2007
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Believe it or not, we lose more on internal car sales between private citizens and dealers than we collect on tariffs or Vats on imports today.

Honestly, it's hard to feel sorry for a government that has 10 times the amount of politicians it need and then pays them 10 times the market rate. Government shouldn't nor has the right to complain not one iota for people making deals between themselves or with dealers. In my honest opinion, those who continue to promote this gross abuse while normal citizens are pasando hambre y dificultades will be rotting in hell after their over indulgent life ends. Good riddens.
 
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beeza

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Nov 2, 2006
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Would I be right in assuming that it not American cars that will be duty free in 2010, but American manufactured cars?

For example some American car brands have factories in Canada or Mexico, so cars from them wouldn't be eligible to enter here duty free.

Also some foreign brands such as Mercedes, BMW and Toyota have factories in the US, so in theory they should be eligible?
 

cobraboy

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Jul 24, 2004
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Honestly, it's hard to feel sorry for a government that has 10 times the amount of politicians it need and then pays them 10 times the market rate. Government shouldn't nor has the right to complain not one iota for people making deals between themselves or with dealers. In my honest opinion, those who continue to promote this gross abuse while normal citizens are pasando hambre y dificultades will be rotting in hell after their over indulgent life ends. Good riddens.
PICHARDO'S boys have to make up for the duty they lose when they get to bring in a car duty free as a perk of being elected/selected/chosen/tabbed.

So who better to bear the burden than the folks who aren't elected/selected/chosen/tabbed?
 

zoomzx11

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Jan 21, 2006
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Come on now!!!

Does anyone really beilieve that cars will be less expensive here in the future? No matter what DR-Cafta reads there is just too much money being made in auto imports. We will pay - one way or another. Just Watch. Not being pessimistic but I have lived here long enough to be realistic. Anyone notice that the fugitive Puerto Rican drug dealer the whole country is looking for was driving one of those import free to politicans high end luxury cars?? Coincidence eh.
 

bienamor

Kansas redneck an proud of it
Apr 23, 2004
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No No

Wonderful. The idea of having a free trade a agreement amongst a group of countries is to give those countries involved a competitive advantage in selling their products to each other over other countries not in the agreement. I see the concept of a free trade agreement escapes the grasp of people here.

They understand the concept but had to figure a way around it, so they could keep getting the money for all the new yepta's for all the Gov. hacks.
 

Luperon

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Jun 28, 2004
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"Every country gets the government it deserves"
 

Tropicdude

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May 26, 2009
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"Every country gets the government it deserves"

Amen to that :)

The Gov. here will just find other ways to tax imports, Cafta or no Cafta, not only will they find the way to keep making what they were, they will find ways to increase those taxes.

90% in this Gov. consist nothing more than a bunch of lazy bums sitting behind desks, justifying their existence by finding new a more ways to fleece the people that actually do something for a living.