Consumers may stand to gain from cheaper imports now that DR-CAFTA agreement allows for products made in duty-free industries in Central America to be sold tax-free in the DR. Dominican manufacturers are concerned this could affect their local sales because the tax free provision does not apply to products made locally in similar duty-free industries.
Trade expert Hugo Rivera says that an interim solution needs to be found to allow the sale of locally-made products here, discounting the taxes on the value added, and also relieving local industries that export to Central America from income tax and other export taxation so they can compete with their Central American competitors that enjoy those privileges.
Rivera forecast that as of 2015, there would be a commercial revolution when the governments of Central America are due to grant their industries better taxation conditions for export than those in effect in the DR.
He said that in Central America companies do not need to be categorized as free zones to export free of tariffs and income tax payments.
Read more in Spanish: http://hoy.com.do/productos-que-no-pagan-impuestos-en-centroamerica-podran-venderse-en-rd/