Santo Domingo.- The authorized auto dealers grouped in Acofave on Tuesday proposed zero tax on vehicles that consume less fuel, as part of the Government’s measures to deal with the crisis spurred by spiraling oil prices.

It said it’s a way for the authorities to send a clear signal which will directly impact the country’s trade deficit.

Acofave said the cost of the first license plate for vehicles of public transport freight, farm products and merchandise must be reduced to a minimum, as well as for short-distance freight equipment transport, since they are capital assets. “These goods are actually being sold mainly with partial or total exemptions and some of that equipment isn’t being registered, which means that the loss of tax revenue would be a minimum.”

It also proposes a reduction to 0% on the value of cost insurance and freight and the first license plate for hybrids, electric or new, factory original vehicles which use natural gas, but not on the modified ones.

Small engine vehicles

In a statement, Acofave proposes a ban on the import of used passenger vehicles which run on gasoline, it their motors are more than four cylinders.

It said the market should make it easy for low income sectors to access those smaller vehicles if they cannot buy a new, noting that it doesn’t make sense to promote an expansion of the number of vehicles with technologies less efficient than the new ones, or high consumption models, or those with six and eight cylinder engines.

The auto dealers added that the country has 2,734,740 vehicles, of which 1,352,720 are motorcycles, or 49.5%.