Customs began applying the controversial 10-percent surcharge, as ordered by Decree 139-03, on 1,637 imported items listed by the Ministry of Finance. The tax was professedly designed to discourage the sale of imports and to halt the devaluation of the peso. Nevertheless, it is expected to serve the government as well, with a potential RD$400 million in added revenues. The new surcharge is said to be a violation of the Constitution, which states that only Congress has the authority to levy taxes. The surcharge is being similarly criticized for contradicting agreements signed by the country with the World Trade Organization.
Business and civic organizations have contested the measure and requested a judgement from the Supreme Court.
President of the Senate, Andres Bautista (PRD-Espaillat), told the press yesterday that he supports the surcharge, as it is merely a temporary measure to help the country move forward from a difficult situation.