The leading industry spokesmen urged that the National Congress pass the tariff reform in the present period of transition. The decline in import tariffs is considered essential to make Dominican exports more competitive. Nassim Alemany, president of the Dominican Republic Association of Industries (AIRD), Antonio Espín, president of the Herrera Industrial Association, and former AIEH president Cesar Nicolas Penson, said that all sectors have agreed on the content of the bill, and thus its passing should not be delayed further. The industrialists also favor the increase of the value-added (ITBIS) tax from 8 to 10%. They say the tariff reform bill reduces taxes on hotel rooms, and thus would compensate for an increase in the ITBIS tax. Furthermore, he said that most food items are exempt from the tax, and thus it will primarily not affect the poor. Espín expressed his concern that if the bill is not passed in the transition period, its approval will be postponed for the session that starts in February 2001. He said from August to February, the new government authorities will be too busy adapting to their new positions.
