New vehicle imports in the first half of this year declined 60%. During the first six months of 2001, only 65,399 units were imported. That compares to 163,091 units imported during the same period last year. Diario Libre says that in addition, there is a large number of vehicles still in port pending payment of the new higher taxes. As a result, government revenues have declined. The newspaper says that President Hipolito Mejia has instructed the Ministry of Finance and Customs to lower the exempt value prior to applying the Selective Tax on Imports. Reportedly, the government has increased the tax exemption from up to US$10,000 import value to US$20,000.
