The agglutinated electrical entrepreneurs in the associations of Electrical Suppliers (ASUME) and the National Association of Electrical Entrepreneurs (Asonelec) demanded from the authorities greater support for the local sector of this sector through policies and measures that contemplate the potential of their capacities to satisfy the electricity market for goods and services.
They also urged to review the tax exemption policies to this sectoral activity in search of integrating regulations that counteract the competitive inequity that translates the ITBS exemption.
They understand that it is imperative to discontinue a series of practices that are harmful to the industry, including the contracting of goods and services from foreign companies by the public and private sectors without investigating the response capacities of the national market, as well as the exemption from payment of taxes to renewable energy projects and to the investments in works of the hotel sector.
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“In essence, what it is about is that using the mechanisms stipulated in laws 57-07 on Incentives for the Development of Renewable Energy Sources and 158-01 on Promotion of Tourism Development (Confotur), they import 100% of the goods without paying the corresponding taxes of the ITBS”, they emphasized Douglas Hasbunpresident of ASUME, and Ivan Cabralpresident of ASONELEC.
“This has created serious consequences for national companies because investors are motivated to purchase goods through foreign companies or directly from manufacturers to take advantage of tax exemptions, however, our market is saturated with goods that they haven’t found a market,” said Hasbún.
While Cabral commented that they have also seen a disproportionate increase in the number of foreign companies and technicians executing electrical projects in the country, without consulting local technicians or inquiring about the nationally available goods.
He pointed out that despite the Dominican Republic having industries for the manufacture of poles, boards, cables and transformers, these continue to be massively imported from the foreign market.
