The local rum industry is in a vulnerable situation, for which it requests the support of sound public policies on surveillance and tax burden that correspond to the reality of that sector, state the directors of the Dominican Association of Rum Producers (Adopron).<\/p>\n\n\n\n
With the tax reform (Law 253-12<\/strong>) approved at the end of 2012, taxes on Dominican rum almost doubled and became the highest in Latin America, causing a 30% fall in formal production and increasing the illicit trade, commercialization, and consumption of adulterated beverages in the country.<\/p>\n\n\n\n The entity asserts that the Dominican beverage has enormous potential to be recognized as a quality product, but it needs adequate surveillance of the domestic market, in addition to the elimination of progressive taxes.<\/p>\n\n\n\n While participating as guests at HOY's Economic Encounter, Circe Alm\u00e1nzar, official spokesperson for Adopron; Jorge Mi\u00f1oso, business consultant; and Ysidro Garc\u00eda, technical coordinator for Adopron, said that the entity is working on two fundamental purposes, which are strengthening the Denomination of Origin (DO) and reducing illicit trade to zero.<\/strong>.<\/p>\n\n\n\n She affirms that progress has been made; however, there is \u201ca kind of perverse incentive\u201d for illicit trade due to excessive taxes.<\/p>\n\n\n\n Considers that the tax burden the local rum industry has had since 2012 is beyond what it can bear.<\/p>\n\n\n\n Puntualizan que desde ese a\u00f1o se evidencia que el sector est\u00e1 en una situaci\u00f3n \u201cmuy vulnerable\u201d que puede provocar una disminuci\u00f3n en el volumen de las recaudaciones de impuestos.<\/p>\n\n\n\n Before the Law 253-12<\/strong> the tax burden on rum was around 40%, increasing to as high as 70% on some types of that beverage with the implementation of the reform.<\/p>\n\n\n\n In addition, they highlight, that measure established a specific tax that has about 70% of the weight, which is why it has been dynamically indexed for inflation.<\/p>\n\n\n\n The directors of Adopron warn that this tax burden creates an informal market, elasticity of consumption, and collection inefficiency, which has been evident since 2017 when the private sector, along with State entities, began to design strategies to combat illicit trade and dismantle organized mafias that caused losses to the treasury of more than RD$13 billion.<\/p>\n\n\n\n They point out that Adopron is not opposed to paying taxes, but rather that it must be taken into account that taxes on alcoholic beverages have two main objectives: to collect revenue and to compensate for negative externalities or the impact on health from irresponsible consumption.<\/p>\n\n\n\n However, they emphasize that with the 2012 tax reform, these two objectives are not being met because less revenue is collected. They cite as an example that in 2023, the lowest tax collections were recorded when compared as a percentage of the Gross Domestic Product (GDP) in the last 20 years, in addition to the fact that between 2020 and 2021, more than 400 people in the country died from consuming adulterated alcohol.<\/p>\n\n\n\n Meanwhile, in countries in the region, the tax rate on distilled beverages is around 32%; in the Dominican Republic, it is 49%, with rum being the product with the highest tax burden in the country, they specified in a conversation with Hoy.<\/p>","protected":false},"excerpt":{"rendered":" Adopron considera que se han logrado avances con esfuerzo de sectores p\u00fablico y privado; sin embargo, hay \u201cuna especie de incentivo perverso\u201d hacia el comercio il\u00edcito La industria del ron local est\u00e1 en una situaci\u00f3n vulnerable, por lo cual solicita el acompa\u00f1amiento de pol\u00edticas p\u00fablicas acertadas en materia de vigilancia y carga tributaria que correspondan […]<\/p>\n","protected":false},"author":1,"featured_media":141,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-140","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economicas"],"_links":{"self":[{"href":"https:\/\/cadenzagrouprd.com\/en\/wp-json\/wp\/v2\/posts\/140","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cadenzagrouprd.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cadenzagrouprd.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cadenzagrouprd.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cadenzagrouprd.com\/en\/wp-json\/wp\/v2\/comments?post=140"}],"version-history":[{"count":1,"href":"https:\/\/cadenzagrouprd.com\/en\/wp-json\/wp\/v2\/posts\/140\/revisions"}],"predecessor-version":[{"id":142,"href":"https:\/\/cadenzagrouprd.com\/en\/wp-json\/wp\/v2\/posts\/140\/revisions\/142"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cadenzagrouprd.com\/en\/wp-json\/wp\/v2\/media\/141"}],"wp:attachment":[{"href":"https:\/\/cadenzagrouprd.com\/en\/wp-json\/wp\/v2\/media?parent=140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cadenzagrouprd.com\/en\/wp-json\/wp\/v2\/categories?post=140"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cadenzagrouprd.com\/en\/wp-json\/wp\/v2\/tags?post=140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}