Hoy newspaper interviewed Jaime Moreno (Helados Bon), Manuel García Arévalo (Pepsi) and Arturo Villanueva (vice president of the Association of Hoteles), Luis Julio Jimenez (president of the Association of Business Lawyers), and economists Frederic Emam Zade and Hugo Ramirez on the reforms pending in Congress. During the economics round table, these concurred that imported goods are every day at a more advantageous position to compete with local goods that have to pay high taxes. The necessary tariff reform would lower production costs, making it easier to import capital goods, input and raw materials that are essential for local production. The DR pays 20-35% tariffs, while area countries pay 10-20%. National Congress has been sitting on the reform for the past four years. The Senate is PRD majority, and the PLD party presented the bill. Now that the PRD is in power there are expectations could be passed on 17 August. The businessmen complained that the DR has not been able to take advantage of the free trade agreements because of the high tariffs paid here. Jaime Moreno: The nation needs to go adapting to the processes of change that are occurring in nations with which the DR competes even if this means changing on a daily basis. Manuel García Arévalo: Dominican companies need to expand, economic and structural reforms are necessary, with priority for the tariff reform. Frederic Emam Zade: There is no reason for delaying passing of the tariffs reform bill and the trade agreements when there is consensus. The only debated issue is whether to raise the ITBIS tax from 8 to 10 or 12%. There is a consensus to raise this to 10%. Arturo Villanueva: Wants the government to eliminate the 5% tax on hotel room sales. Luis Julio Jiménez: He criticized that legislators do not legislate to prevent, rather they legislate to correct distortions, and then at the last minute. He criticized that privatization of energy was done without previously passing the Electricity Bill. In his opinion, congressmen legislate only to protect political and economic interests or to support their government party or attack the contrary party, not for the national interest.
