SANTO DOMINGO.- Racing yachts, motorboats, jet skis and other vessels that want to enter the country would not pay taxes for 10 years, according to the law approved this Friday by the senators of the Dominican Republic.
The controversial piece of legislation, which had been criticized by the deputies, was approved on second reading, exempting a group of luxury boats from taxes or tariffs.
According to the project, approved in an extraordinary session, yachts, racing yachts, motorboats, personal watercraft or jet skis, sailing boats and other vessels will not pay taxes for a decade, starting from the date the law is enacted.
The initiative, proposed by Senators Alexis Victoria Yeb and Ginette Bournigal, establishes that investments made in infrastructure areas in favor of recreational nautical tourism will enjoy tax exemptions.
Article 48 of the bill exempts from property tax the land and improvements used in nautical activities.
"Total exemption from import tax, contribution or levy on the importation of materials, equipment, furniture and accessories used in the construction, rehabilitation and commercial outfitting of the service activity or products linked to recreational nautical tourism," specifies numeral two of article 48 of the project.
The justifications
To gain approval for the project, the proponents argued that the Dominican Republic has potential to develop recreational nautical tourism, since 75% of its border faces the sea, and the island's geographical position "gives us an important advantage.".
Among the objectives of the law, the project states that its purpose is to promote nautical tourism through regulations on navigation and nautical devices for recreational, private and commercial purposes.
The initiative excludes from its provisions maritime vessels engaged in commerce, scientific research vessels, artisanal fishing vessels and port auxiliary vessels.
The proposal now goes to the Chamber of Deputies for consideration.
