2005News

Dominican Export Lobby on reform

The Dominican Export Lobby (LED) is demanding a national agenda that would allow Dominican exporters of goods and services to compete with certain possibilities of success within the DR-CAFTA agreement, which it supports. The large Dominican exporters believe the proposal in the Chamber of Deputies is near-sighted as it does not face the reality experienced by the leading productive sector in the Dominican Republic and, should it be approved as is, it would lead important sectors such as tourism and agribusiness towards bankruptcy. Specifically, the LED is requesting 0% rate Income Tax (ISR) for all exports of textiles, fruits, produce, industrial and mining goods (whether from a free zone or not) at least until 2010, stating that this is a privilege that has been agreed upon in favor of the DR after the intense negotiations at the Doha Round within the World Trade Organization (WTO). Also requested are 0% VAT for the export of all services, and the abolition of Selective Consumer Tax (ISC) for goods considered “luxury items” but that in reality are basic goods for the hospitality sector and tourist services offered as complementary to golf courses, theme parks, underwater museums, marinas and ports. They are also requesting the implementation of a support program for Dominican agriculture producers similar to those existing in other DR-CAFTA countries, to be able to act in equal conditions. The immediate reduction of the government payroll related to the cooperation for development of exports and a simplification of the myriad commissions, departments, centers and offices formally in charge of fostering exports are also requested.