[DR1] The JAD wants VAT removed

[NewsWhore]

The Dominican Agro-business Council (JAD) wants Congress to remove the VAT tax (known as ITBIS) removed from all agricultural raw materials and supplies. The executive VP of the JAD, Osmar Benitez, told reporters from Hoy that the council had fought to have these items removed from the latest tax reform package, but the internal revenue office managed to keep them on the books. Benitez said that as things stand, there is no way for the farmers to be reimbursed for their VAT payments, as provided for under the law. As an alternative strategy, Benitez said that the JAD would support the motion now before Congress to grant total autonomy to the Internal Revenue Department. According to the agro-business leader, the problem is that VAT collected on items that are supposed to be tax-free is included in the cost of production that is passed on to the consumers, who are not supposed to be paying any VAT on these items. This contradiction can be resolved, according to Benitez, by eliminating VAT in the first place.

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