The US warns Dominican Government on Web shopping tax

Santo Domingo.- The U.S. Embassy on Wednesday said Washington complies with its accords, including the U.S.-Central America-Dominican Republic Free Trade Agreement (DR-CAFTA), while acknowledging every country’s right to propose and pass laws,

The affirmation quoted by diariolibre.com stems from a tax package passed by Congress that includes on line purchases of less than US$200, in violation of the free market which the DR-CAFTA promotes.

"To propose and pass legislation is the right of every sovereign government. Nonetheless the U.S. government closely monitors legislation of each partner country to ensure compliance with the Agreement, and the Office of the U.S. Trade Representative is the U.S. agency responsible for the legal interpretation of the Agreement," said the embassy’s press office.

In a statement the American Chamber of Commerce of the Dominican Republic yesterday said "an abrupt change of the existing legal framework on investment and CAFTA compliance would have negative consequences for the country."

It said taxes on low value goods can only be changed through mechanisms in the treaty and called on Congress to respect international commitments when voting.