The National Federation of Retail Merchants of Provisions (Fenacodep) has expressed concern about the possible impact that the next tax reform could have on small merchants in the Dominican Republic, especially in relation to the increase in taxes on key products such as alcoholic beverages.
According to Fenacodepan increase in the tax burden would pose a threat to thousands of retail merchantswho already deal with high tax pressure.
The federation highlighted that 98% of business in the country they are micro, small and medium-sized companies (MSMEs), which represent approximately 60% of jobs and more than 32% of the Gross Domestic Product (GDP).
Domingo Colón, president of Fenacodepstressed the importance of grocery stores in the Dominican economy and warned that greater tax burden would affect their ability to generate income and employment.
“This would negatively impact the economic development and social of the country,” he said, adding that the situation could stop the emergence of new MSMEs and limit the growth of those already established.
alcoholic beverages
Columbus also criticized the idea of ​​further taxing alcoholic beveragessuch as beer, whiskey, rums and wines, arguing that this measure is not a viable solution for retail trade.
“This increase will disproportionately hit the colmaderoswho already face serious challenges in a competitive economic environment with increasing operating costs,” he indicated.
He warned that if the prices of the alcoholic beveragesa “death blow” will be dealt to the more than 60,000 establishments that sell more than 70% of all the country’s grocery supplies and a large percentage of the alcoholic beverages manufactured in this country.
“We believe that the alcoholic beverages They can’t stand more taxes in this country and, consequently, the grocery stores are categorically opposed to new taxes being imposed on alcoholic beverages,” the merchant noted.
Currently, the beverage sector in the Dominican Republic faces a tax pressure of 35.2%, which far exceeds the national average of 10% recorded in 2022.
- Fenacodep warns that a new tax increase within the framework of the tax reform could place an even heavier burden on apiaries, hampering their ability to compete in the market.
The federation calls on the government to consider the difficulties faced by this sector and look for alternatives that allow the sustainable development of small businesses.
Fenacodep demands that the tax reform do not suffocate retailers, who play a crucial role in the Dominican economy at all levels.
