NewsWhore
11-25-2010, 02:40 PM
A request is being made to the Border Development Council to permit a foreign-capital company that produces soft drinks in the country to operate tax-free beverages. The resolution, which Hoy newspaper says has taken everyone by surprise, would take the other soft drink companies out of the market. According to the report, these initiatives emerged after the questioning by government officials and the business sector on Law 28-01 on Frontier Development. The privileged status request comes from the Industria San Miguel del Caribe, which produces and sells Kola Real and other soft drinks. The government came to a solution requiring the San Miguel company to apply value-added tax (ITBIS) to their product. Tax Department head Juan Hernandez warned some time ago that unless Law 28-01 were eliminated there would be chaos in the Dominican tax system. Minister of Hacienda Vicente Bengoa echoed these sentiments at the time.
Hernandez argued that many of the companies that operate outside the area covered in the Law on Frontier Development would be forced out of business due to unfair trade practices by the companies that received the incentives of the law. The article also says that the law provides incentives that contravene the Stand-by Arrangement signed with the International Monetary Fund.
More... (http://www.dr1.com/index.html#6)
Hernandez argued that many of the companies that operate outside the area covered in the Law on Frontier Development would be forced out of business due to unfair trade practices by the companies that received the incentives of the law. The article also says that the law provides incentives that contravene the Stand-by Arrangement signed with the International Monetary Fund.
More... (http://www.dr1.com/index.html#6)