The Dominican Federation of Textiles (FEDOTEX) today expressed its concern about the adverse effects that the recent Tax Reformpresented by the Government, could generate in the textile sector of the Dominican Republic.
Eduardo Grullonpresident of FEDOTEX, pointed out that although the Tax Reform is necessary for the economic strengthening of the country, it is essential to reconsider the burdens that disproportionately impact the textile industry, a crucial sector for the national economy.
You can read: 9 arguments of the productive sectors against the tax reform
The Law 56-07which declares the textile chain, clothing and accessories sectors, as well as footwear manufacturing and leather manufacturing, a national priority, has been essential for the growth and sustainability of these industries. This legislation has provided a regulatory framework that has allowed the competitiveness and development of medium, small and micro businesses in the sector.
The elimination of tax exemptions proposed by the government could affect approximately 70,000 formal workers that depend on this economic activity. With a majority of small and medium-sized companies, the tax burden would be unsustainable, causing a slowdown in productive activity and the possible loss of thousands of jobs.
FEDOTEX urgently calls on the Government to reconsider the proposed measures and dialogue with the actors in the sector, seeking solutions that do not compromise employment or the development of the textile sector. It is crucial to preserve the conditions that have allowed the sustainability of this industry.
