Economy October 10, 2016 | 8:33 am

Industries balk at Customs 50% tax on raw material imports

Santo Domingo.- "If what the governmentwants is to place obstacles on the export sector and the producer of tax free items,it will do so with this measure," was Dominican Industries Association (AIRD)vice president Circe Almánzar’s response to charging a 50% VAT (ITBI) tax on rawmaterial imports at Customs.

"But if what it wants is to increase taxrevenue instead, it will not do so," she said, in response to Finance ministerDonald Guerrero’s justification to charge the higher tax.

On Thursday Guerrero said it’s wrong to thinkthat to charge the 50% VAT in advance at Customs on imports of raw materials,machinery and equipment by companies in compliance with the regulator (Proindustria),jeopardizes stability and competitiveness.

The official said most of those companieshave been operating for many years and are also mature industries with a high marketshare, which can pay taxes and contribute their share to state coffers.

But Almánzar retorted: "That’s not thepoint, the point is that you have to be more competitive every day, you have toput your national production on an equal footing against yourcompetitors."

The business leader added that here, theindustrial sector is always punished.

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