Celso Marranzini, president of Petroquimica Dominicana, the nation’s leading exporter to Central America, urged the country to strengthen its exporting policy. “The only way to grow is through exports,” he told El Caribe newspaper. He said there is no global policy that reflects the importance of the sector and grants facilities to its manufacturers the way Central America does. Because of this, he said Dominican businessmen are not taking advantage of the new free trade agreement the way Central American manufacturers are. He said exporter companies are instead converting to free zones to avoid the many taxes that burden production in the DR. “In the export business there are not enough profits to pay taxes on every corner. It is inconceivable to charge a 1.5% gross sales tax and value-added tax to exporters. One should not have to export taxes, but rather compete with incentives offered by the government,” he said. In addition to excessive taxes, he said the local manufacturers are affected by the high cost of power and by shipping companies that offer an expensive and inefficient service. Marranzini said the DR is not taking advantage of its prime geographic location which should mean the country would take advantage of less costly transport and faster delivery times. He gave credit to Dominican businessmen who have been able to survive what he described as “the difficult and hostile Dominican market” due to its lack of rules and high taxes. Marranzini said the government needs to have a coherent policy that facilitates clearing customs and offers credits for exporters. He said the government should also implement the one-stop window that was intended to reduce bureaucracy.
