Postponement of Free Trade gives government RD$9,320M more
22 December 2005
Santo Domingo.- The decision to maintain the exchange commission at a rate of 9% during 2006, plus duty charges to be collected during the first 6 months next year prior to entering the DR-CAFTA would give the government an extra-budgetary income of approximately RD$9.3 billion.
This revenue would be in addition to the RD$238,550.4 million estimated by authorities for the budget in 2006.
The extra income would occur because the government requested of the United States to allow the country to enter de Free Trade Agreement in July 2006, allowing authorities to continue collecting duties while applying the tax reform at the same time.
The exchange commission at 9% would generate RD$14,538.6 million in 12 months and RD$7,269.3 in 6 months. RD$1,700 millions would be collected by way of duty charges, in addition to RD$350 million equivalent to 50% of the ITBIS tax charged to US products that pay duty levies, for a total of RD$9,319.4 million.