Industrialists howl at new measure
The Fernandez administration has started collecting the 16% VAT tax (the tax on the transfer of manufactured goods and services or ITBIS) on raw materials imported by manufacturers. The Pro-Industry Law had established this tax would be collected on sales goods not at the port of entry of the inputs.
The government says the move will allow them to collect between RD$1.8 billion and RD$2.0 billion from now until the end of the year. The measure, which was communicated to the Customs collectors last weekend, has been rejected by manufacturers, who say it violates Art. 20 of Law 392-07.
In a paid advertisement today, 21 industrial associations protested Customs applying the tax. Former President Hipolito Mejia sided with the manufacturers and asked the administration to correct the move.
In a press release, manufacturers say the measure will de-capitalize many businesses that will have to find money they [...]
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