The Senate approved yesterday a first reading on the bill that would abolish the 25% tax on corn syrup imports. The surcharge was ratified after the country had signed a free trade agreement with the United States, an issue that has caused a lot of fallout. The United States Trade Representative Office opposes the surtax on the grounds that it violates the DR-CAFTA accord. Some 20 senators of 32 voted in favor of removing the touchy item from the legislation, while 12 others abandoned the hall, including the president of the Senate, Andres Bautista (PRD Salcedo), in protest of the generous settlements the senators granted the sugar cane industry in exchange for eradicating the contentious tax.
The bill presented by Senator Ramon Alburquerque (PRD-Monte Plata) establishes that the government will return to the sugar industry all taxes that have been paid on purchases to providers or to customs of all general goods, finished products, semi-finished products, raw materials, inputs and packaging materials, regardless of whether they to be used for the manufacture of taxable goods or not. Also exempted will be all imports of capital goods brought in through the payment of exchange commissions or any other similar charges established by the Monetary Board or any government entity.
The senators voted to eliminate Paragraph IX of Article 375 that was modified by Article 11 of Law 288-08 on Tax Reform.
The senators agreed to amend item “e” of Article 87 of Law 11-92 of the Tax Code to allow the deduction of funds used to repair, conserve or improve agro-industrial activities, including the sugar industry, of an amount that does not exceed 5% of assets.
A nine-member commission was appointed to study the bill that may be presented for a second reading as early as Friday.