NewsWhore
09-08-2010, 03:50 PM
The Federation of Industrial Associations (FAI) is disputing statements on the efficacy of the agreement Customs has reached with businesses for these to waive their rights under Pro Industry Law 392-07.
The FAI said that the data was not precise because it indicated that Customs would receive RD$1.3 billion from now until the end of the year because of the VAT (ITBIS) prepayment on raw materials imported.
The FAI, headed by Ignacio Mendez, said that the advance payment would be just RD$325 million all received in one month - according to government statistics - and from then on, there would be no effect.
"This is to say that the resources that will be paid to Customs as an advance payment of the ITBIS will not enter the DGII accounts, and this is why we insist that what is happening is a sort of tax collection mirage that does not make sense", said Mendez in a statement quoted by Hoy and other newspapers.
The Department of Customs has managed to secure 85% of companies that had been authorized to pay ITBIS once manufactured goods were sold to the public to pay at Customs once the raw materials for the production is imported. The businesses had benefitted from Law 392-07 and were paying ITBIS after the goods were sold to customers. Customs asked them to "voluntarily" waive their rights under the law and pay the taxes to help the government improve its cash flow.
The government expects to receive an extra RD$1.3 billion this year and RD$3.72 billion next year. 58 companies have adhered to the change in plans.
More... (http://www.dr1.com/index.html#4)
The FAI said that the data was not precise because it indicated that Customs would receive RD$1.3 billion from now until the end of the year because of the VAT (ITBIS) prepayment on raw materials imported.
The FAI, headed by Ignacio Mendez, said that the advance payment would be just RD$325 million all received in one month - according to government statistics - and from then on, there would be no effect.
"This is to say that the resources that will be paid to Customs as an advance payment of the ITBIS will not enter the DGII accounts, and this is why we insist that what is happening is a sort of tax collection mirage that does not make sense", said Mendez in a statement quoted by Hoy and other newspapers.
The Department of Customs has managed to secure 85% of companies that had been authorized to pay ITBIS once manufactured goods were sold to the public to pay at Customs once the raw materials for the production is imported. The businesses had benefitted from Law 392-07 and were paying ITBIS after the goods were sold to customers. Customs asked them to "voluntarily" waive their rights under the law and pay the taxes to help the government improve its cash flow.
The government expects to receive an extra RD$1.3 billion this year and RD$3.72 billion next year. 58 companies have adhered to the change in plans.
More... (http://www.dr1.com/index.html#4)