The president of the Dominican National Brewery (CND)Fabián Suárez, spoke this Tuesday about the Bill of Tax Modernizationwhich proposes a increase in taxes alcoholic beverages.
“Clearly for us it is a affectation and we are worried for what it may mean, but at this moment We are analyzing all the implications to be able to give a more concrete answer about what it means,” the executive emphasized.
“We are worried about what it could mean”President of the Dominican National Brewery
Suárez recalled that the brewing sector generates 2.7% of GDP of the Dominican Republic, contributing 41,335 million pesos in taxes annually and that, in the case of Dominican National Breweryis the fifth largest tax taxpayer in the Dominican State.
He project Tax Modernization Law presented last Monday by the government establishes that the selective consumption tax (ISC) for alcoholic beverages is increased by 724.12 pesos to 840 pesos for each liter of absolute alcohol.
Furthermore, an increase in the tax rate ad valoremfrom the 10% currently charged to 11%.
- Merchants warn of decreased sales due to reform
The president of the Dominican Federation of Merchants (FDC), Iván García, joined the position of the alcoholic beverages sector to warn about the impact that the Tax Modernization Bill will have.
Threat to the alcoholic beverage sector
García considered that the increase in tax burden on alcoholic beverages represents a serious threat for thousands of merchants, who would see their sales decrease if this bill is approved.
In García’s opinion, the increase in taxes on alcoholic beverages could further weaken the ability of merchants to keep their businesses alive, mainly because a drop in sales would affect the generation of jobs, affecting thousands of families that depend on those businesses.
He recalled that 98% of business In the Dominican Republic they are micro, small and medium-sized enterprises (MSMEs), which contribute to nearly 60% of jobs and more than 32% of the Gross Domestic Product (GDP).
