Motor vehicles and household appliances top the list of items for which demand has fallen steeply when compared to last
year. Importers believe that with the latest increase in the exchange rate commission on imports, this situation is only
likely to worsen. “The general situation in the country has meant that sales are very slow. In many cases, prices have
gone up to levels that the Dominican consumer cannot afford. Just when we thought there was going to be a truce, we are
faced with the increase in exchange commission,” said the importers’ association president, Andres Dauhajre Sr and
predicted further price hikes of 7-10% on consumer items. The three main factors making life difficult for importers are
the unstable dollar-peso exchange rate, the dismal power-supply situation, and the “unfavorable political climate” for
business, according to Dauhajre, who is also the president of UNE, the national business union. He believes that the
government should concentrate taxation in three or four main areas, instead of what he described as “hundreds of atomized
taxes that only serve to decelerate the process, cause inefficiency and increase public-sector bureaucracy.” Dauhajre
acknowledged that the country was going through difficult times and that the business community had to play a part in
helping alleviate the situation, but he called on the government to set an example by cutting down its own public spending.