2005News

Business worries about tax package

Both the Dominican Association of Exporters and the Industrial Association of the Dominican Republic expressed some concern over the pending passage of the tax reform package. In brief, their concern is related to the possibility of the Dominican Republic’s non-entry into the DR-CAFTA as a result of a failure to pass the bill before January. As has been widely publicized, the stumbling block is the removal of the exchange commission tax on dollars used to import goods and services, and the taxes needed to restore this cash flow to the government coffers. AIRD president Yandra Portela Vila called on legislators to continue their talks and discussions in order for the bill to be passed as soon as possible. She called upon the politicians to set aside party loyalties and to think of the good of the nation. Also urging passage was Celso Marranzini, a prominent businessman and former head of the CONEP business association, who said that the worst case could be that the “legislators from the party that negotiated the DR-CAFTA agreement could also be the entity that buries not only the treaty but also the possibility of the country to take advantage of new investments that would create jobs and economic growth.” Jose Antonio Flaquer Lopez, the head of the ADOEXPO group told reporters that the elimination of the exchange commission tax is obligatory, and, therefore, it is necessary to pass the required tax reform in order for the government to recover the lost revenues.