The Shippers Association recently announced an increase of US$35-US$70 on shipments, depending on the size of the cargo. This is to be able to cover the 12% ITBIS tax now levied on shipping operations by the government. Horacio Alvarez, executive director of the Dominican Exporters Association says that the new shipping cost increase in addition to other new taxes due as of January (5% exchange commission, ITBIS, 30-36% interest rates, deficient and expensive power service) is lethal for the exporting sector. The exporting sector does not have the flexibility of passing these costs on to the consumer. The president of the National Union of Businessmen (UNE), Andres Dauhajre said he does not understand why the government wants to levy the tax on shippers. He said that imported goods are taxed when the merchandise clears Customs.
