The President of the Senate Ramón Alburquerque said that an increase in the value added tax is forthcoming, as this is a requirement for the passing of the Central American and Caribbean free trade agreements. No timing for the passing was set, though. Senator Alburquerque justified the increase of the value-added tax as he considered it the tax that least affects lower income Dominicans. Tariffs would be reduced from a maximum 35% to 20%. He said the increase in the value-added tax is necessary to compensate for the estimated RD$7,000 million in customs taxes as a result of the decline in tariffs. He says the increase in the value-added tax is a required step prior to the passing of the free trade agreements.
