NewsWhore
08-25-2010, 03:40 PM
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 have not budgeted for right away and that most medium and small companies will have to go into debt to pay these taxes".
The manufacturers say that the measure is "a mirage or an illusion for the government's collections, since the VAT collected in Customs (DGA) will be compensated for, and therefore it will not be paid to the Department of Taxes (DGII) in no more than 60 days, producing a neutral effect in the effective fiscal collections".
They said that the postponement of ITBIS payment to when the manufactured article is sold does not constitute a tax exemption, but rather it promotes competitiveness and investment in industries, generating employment, hard currency and greater possibilities of fiscal income for the state.
The manufacturers say that the violation of Law 392-07 is an infringement of judicial security. They indicated that compliance with the IMF agreements "should not be at the cost of violating the law, infringing judicial security, weakening the country's competitiveness and the investment climate, as well as creating uncertainty and distortions in the local industry, a sector that helps generate 34.7% of the national income".
Business organizations said it is totally counterproductive for the very authorities, headed by the President of the Republic himself, who promoted the Law of Industrial Competitiveness and created Pro-Industry, to now deliver the death knell that will ruin the achievements of the three-year old law.
More... (http://www.dr1.com/index.html#4)
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 have not budgeted for right away and that most medium and small companies will have to go into debt to pay these taxes".
The manufacturers say that the measure is "a mirage or an illusion for the government's collections, since the VAT collected in Customs (DGA) will be compensated for, and therefore it will not be paid to the Department of Taxes (DGII) in no more than 60 days, producing a neutral effect in the effective fiscal collections".
They said that the postponement of ITBIS payment to when the manufactured article is sold does not constitute a tax exemption, but rather it promotes competitiveness and investment in industries, generating employment, hard currency and greater possibilities of fiscal income for the state.
The manufacturers say that the violation of Law 392-07 is an infringement of judicial security. They indicated that compliance with the IMF agreements "should not be at the cost of violating the law, infringing judicial security, weakening the country's competitiveness and the investment climate, as well as creating uncertainty and distortions in the local industry, a sector that helps generate 34.7% of the national income".
Business organizations said it is totally counterproductive for the very authorities, headed by the President of the Republic himself, who promoted the Law of Industrial Competitiveness and created Pro-Industry, to now deliver the death knell that will ruin the achievements of the three-year old law.
More... (http://www.dr1.com/index.html#4)