Joy along the border

[NewsWhore]

The decision of the Supreme Court that eliminated the changes to Law 28-01 was greeted with jubilation along the border where there is now hope for a renewed series of investments. Law 28-01 encourages investment in the seven border provinces with Haiti under a completely tax free protocol. Pedernales, Barahona, Independencia, Bahoruco, Elias Pina, Monte Cristi and Santiago Rodriguez are the poorest and least developed provinces, and attracting investments has been very difficult. Under the initial provisions of the incentive law, cement, soft drinks and assembly businesses set up shop in the provinces. However, pressure from industrialists in Santo Domingo forced through Law 236-05 which took away many of the tax privileges. Last week the Supreme Court declared the provisions of Law 236-05 to be in violation of the Constitution. According to El Caribe, investments along the frontier will increase, and more jobs will be created. The court's decision was not met with universal glee, as industrialist Celso Marranzini criticized the fact that the VAT tax was not kept on products proceeding from border industries. As reported in Hoy, Marranzini said that this was an unfair trade practice, and that the businesses along the border should receive other incentives, but not the VAT exemption.

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