Jorge Ivan Ramirez, president of Verizon Dominicana, said that tops on the must list for Dominican business global competitiveness is the reduction of taxes. He said that import taxes, the exchange surcharge and the consular invoice need to be eliminated if Dominican business is to be on par with its international competitors and ready for the DR-CAFTA competition. Ramirez advocated for an integral fiscal reform where taxes will be reduced and the cost structure of business improves. He said that at present operational costs of those who produce goods and services in the DR are affected by distorting taxes, such as the exchange surcharge and the consular invoice. Ramirez said he is aware these taxes make up RD$23 billion in revenues for the government. The government needs to balance its revenues and present spending to keep within the limits set by the International Monetary Fund stand by arrangement.
Ramirez feels that the DR-CAFTA is a tool for economic development that offers many opportunities for the country. He told Hoy newspaper that the trade agreement presents at the same time very big challenges for the government, society, political and private sector, and should be seen as a national project. In his opinion, the government should give preference to supporting the small and medium size businesses. “If the country focuses on a national plan, on an economic agenda, that this be the priority of the country above the political agenda, then we will get ahead and we can use this as an instrument,” he concluded.
Kevin Manning, president of the American Chamber of Commerce in the Dominican Republic, is hopeful that the US Congress may approve the agreement by June and then it can go into effect by December. Pending also is Dominican congressional approval. Manning said that the DR-CAFTA will contribute to accelerate the process of reform of the Dominican state, regarding taxes, competitiveness and arbitration procedures. He stressed, though, that the reforms will not happen automatically. “The public sector and the productive sectors need to work together to prepare the package of measures and policies in the short, medium and long term, that improve the country’s competitiveness,” he stated.
The president of Verizon, Ramirez said that there is a consensus in favor of Congress confirming the agreement and what needs now to be done is see how the country can best take advantage of it.
The president of Verizon said that his own company is investing US$151 million in new technology this year.