The Dominican Confederation of Micro, Small and Medium Enterprises (Codopyme), together with the National Association of Companies and Industries of Herrera (Aneih), the National Union of Entrepreneurs (UNE) and the National Organization of Commercial Companies (ONEC), filed this Monday a Direct Action of Unconstitutionality before the Constitutional Court against articles 5 and 16 of the Law 98-25which modifies the Law on Comprehensive Management and Co-processing of Solid Waste.
According to the unions, the challenged articles impose economic burdensdisproportionate technical and administrative, putting into risk sustainability, employment and competitiveness of micro, small and medium-sized enterprises (MSMEs).
Fernando Pinalespresident of Codopymestated that they support environmental protection, but criticized that the “special contribution“is calculated on gross incomeunrelated to the actual generation of waste, and can increase the payments of lower-income companies by up to 500%.
Through a press releasebusinessmen warn that the law violates the freedom of enterpriseforces to pay taxes even to inactive companies and especially affects sectors with regulated margins, where net profitability is minimal.
Economic and operational impact on MSMEs
Furthermore, they point out that the MSMEs were excluded of the commission provided for in the law, despite representing 98% of the country’s productive fabric.
- He article 16according to the block, imposes annual auditsbiodegradability certifications and import restrictions without economic impact studies, affecting the operation and competitiveness of small and medium-sized industrial companies.
“We defend the environment, but not at the cost of bankruptcy MSMEs. Regulating cannot mean suffocating those who produce and generate employment,” expressed the unions, who reiterated their willingness to dialogue and sustainable solutions that balance environmental protection with national production.
