Business
Haiti imposes new taxes on imports in bid to protect local industry and grow economy
Haiti is raising taxes on a number of imported products as the French-speaking Caribbean Community (CARICOM) country moves to protect local industries from unfair competition.
The country’s Secretary of State for Fiscal Reform, Ronald Décembre, said the Martelly administration has an obligation to protect local producers and industries that are supporting the country’s economy and creating sustainable jobs.
“We have incentive tariffs for products we wish people to import and deterrent tariffs for products we believe are harmful to national production,” Décembre told the Haitian-based website, HCNN.
He said taxes and tariffs on imported corn and beans will increase by nearly 400 percent while the duty on imported rum has been hiked from 15 to 25 percent. Imported Wheat flour, which previously enjoyed tax-free status, will now attract a 15 percent tax, while imported pasta products will move from 10 to 20 percent.
The tax on imported rice remains unchanged at 3.5 per cent because officials say the country is not yet in a position to produce enough rice to satisfy the local demand.
The new taxes are expected to come into effect in October and must be approved by both houses of parliament.
Décembre said that the imported goods, often subsidized by producing countries, can be bought on the local market at a cheaper price, and is a main factor in many local businesses closing down.
