United States Ambassador Hans Hertell, speaking before the American Chamber of Commerce in Santo Domingo, called for a rapid approval of the DR-CAFTA pact and the removal of the exchange commission on imported goods. The exchange commission is a 13% charge the government levies on the use of hard currencies in purchases of raw materials and other goods in the foreign marketplace. Hertell called the tax “inconsistent with the obligations the Dominican Republic has with the World Trade Organization.” The ambassador also called for the elimination of the tax even before a tax reform that would be designed to provide equal funds to the government’s treasury. According to Hertell, “The logical decision is that the desire of the Association of Industries, that the tax be abolished, should be approved at once by the Monetary Board.”
The following day, Presidential Minister for Technical Affairs, Temistocles Montas, told reporters from the Listin Diario that it was impossible for the government to get rid of the tax, especially without tax reforms that would allow the government to recover by other means the billions of pesos in revenues that the exchange commission generates.
As reported in Hoy newspaper on Friday, Montas said the government could not reveal how the tax burden will be redistributed, as he recognizes the surcharge eventually needs to go. First is ITBIS with RD$40 billion, income tax with RD$25 billion, exchange surcharge with RD$21 billion, customs tax with RD$15,000 billion, petroleum tax with RD$14 billion, and selective luxury tax with RD$9 billion.
During his talk, the US ambassador expressed his optimism that DR-CAFTA would be passed by the US Congress by July. He highlighted the benefits of permanent access to the US market, requirement of tenders for purchases of goods and services, and the strengthening of the legal system.