The Minister of Economy and Finance, Ketleen Florestal, spoke with Le Nouvelliste on Tuesday, September 10, 2024, about the challenges of border surveillance and the prospects for optimizing customs revenues. During the interview with Roberson Alphonse and Frantz Duval, she announced that measures would be taken in the upcoming budget to combat smuggling.
“We are currently in discussions with technical partners to strengthen our border surveillance. Several proposals and models are on the table, and we are analyzing which approach would be best suited for our situation. Initiatives in this regard will be announced soon,” Ketleen Florestal stated.
“We don't believe that there has been insufficient mobilization of resources to fight smuggling. Certain measures need to be taken. The Prime Minister is deeply concerned with finding the best solution to curb this issue. Smuggling is a fiscal problem because taxes aren't collected, and it also harms the national industry as we are flooded with foreign products,” she explained.
The Minister of Economy and Finance also urged importers to provide customs documents on time to facilitate the customs clearance process and avoid demurrage fees. “In today’s context, not everyone can benefit from the green channel. It’s true that we apply it in urgent cases, but we must uphold our mission,” the minister clarified.
According to the Minister, the government is pleased with the performance of the fiscal agencies but recognizes the need for reforms, particularly within the General Directorate of Taxes (DGI).
“We will continue to support and push the two fiscal agencies toward improved performance. At the same time, we will undertake necessary reforms, particularly at the DGI, to broaden the tax base.”
Customs revenues at the border with the Dominican Republic represent less than 5% of the general revenues. When asked what the government plans to do to better control the flow of products from the neighboring country, Ms. Florestal highlighted the existing cooperation on customs data sharing between the two nations on the same island.
“I can confirm that the central bank regularly receives data to balance payments. The data is always adjusted,” the minister revealed.
Regarding smuggling and its negative impact on the economy, the Minister of Economy and Finance explained that “smuggling makes members of the private sector who follow the proper customs procedures less competitive. Under such conditions, those who engage in fair competition will struggle to sustain their activities.”