Couriers: Taxing internet purchases would violate DR-CAFTA
The ADPSEC called on Dominican consumers to demand their right to choose
SD. The Dominican Courier Association (Asodec) said yesterday that if the government taxes the internet purchases with values of less than US$200, it will directly affect the consumer and violate the Central American and Caribbean Free Trade Treaty (DR-CAFTA) with the United States. This treaty calls for tax free purchases with costs below this amount. In the sense, they called upon the consumers to defend their right to choose freely.
In the meantime, Jose Burdie, the president of the association, recalled that the free trade treaties are two way, and that the United States and Central America are open to receive products of Dominican merchants. According to what he said, a tax would reduce the purchases by Internet and affect the exports of perishable goods.
At the present time, Internet purchases for less than US$200 pay a Customs rate of US$0.25 per kilo of weight imported. The consumers that use this option can save themselves, according to the Adosec president, as much as 200% to 300% on a product, with regard to the local prices.
Adosec estimates that each month, 65,000 Dominican buy something over the Internet and about 500,000 do it each year, with represents a business of some RD$150 million. What Dominican buy the most are clothes, shoes and technology.
Cadolec
Regarding this issue, the president of the Dominican Chamber of Electronic Commerce (Cadolec), called upon local businesses to offer their products at better prices in order to compete with the merchandise that is sold by Internet or place their offers on the web.
"The one responsible for the local business no being competitive is the state, that has excessive taxes and that raises the costs, not the commerce over the internet," said Domingo Rojas Pereyra.
In the meantime, Jose Burdie, the president of the association, recalled that the free trade treaties are two way, and that the United States and Central America are open to receive products of Dominican merchants. According to what he said, a tax would reduce the purchases by Internet and affect the exports of perishable goods.
At the present time, Internet purchases for less than US$200 pay a Customs rate of US$0.25 per kilo of weight imported. The consumers that use this option can save themselves, according to the Adosec president, as much as 200% to 300% on a product, with regard to the local prices.
Adosec estimates that each month, 65,000 Dominican buy something over the Internet and about 500,000 do it each year, with represents a business of some RD$150 million. What Dominican buy the most are clothes, shoes and technology.
Cadolec
Regarding this issue, the president of the Dominican Chamber of Electronic Commerce (Cadolec), called upon local businesses to offer their products at better prices in order to compete with the merchandise that is sold by Internet or place their offers on the web.
"The one responsible for the local business no being competitive is the state, that has excessive taxes and that raises the costs, not the commerce over the internet," said Domingo Rojas Pereyra.
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