2005News

LEAD’s agenda

A new export advocacy group, Lobby Exportador – Accion Dominicana (LEAD) has issued its Punta Cana Declaration, calling for a 10-year pro-export plan. The group seeks an agenda of specific measures that would enable Dominican exporters of goods and services to compete with the onset of DR-CAFTA, which was recently ratified by the Dominican Congress. LEAD calls for the gradual extension of most-favored-nation treatment, the commitment to extend to other countries the lowest tariff rates it applied to any third country, at the pace of DR-CAFTA to other countries with which trade agreements have been reached. Furthermore, it advocates zero tax on exports until 2010 and calls for the abolition of all taxes on capital goods and raw materials. It calls for a reduction in the luxury tax on housing (IVSS) to 0.5% and that it should be made income tax deductible, and the annual depreciation of goods at 20%. It also seeks that improvements and repairs can be up to 25% of capital assets and be deductible from income tax. LEAD seeks that all export production (goods and services) that has already paid VAT (ITBIS) taxes can compensate these payments made to third parties or the Dominican government. Regarding specific sectors, LEAD seeks a differentiated ITBIS tax of 8% on tourism services, the elimination of the luxury tax on inputs used by the hotel sector and complementary tourism services and the removal of taxes on tourism promotion. As for the agriculture sector, LEAD seeks that support programs similar to those that benefit DR-CAFTA partners be implemented. For the productive sector in general, LEAD emphasizes the fulfillment by the government of laws already in place. The informal organization also supports the drawing up of a medium and long term sustainable plan, and expresses its deep concern about the lack of promotion of development.