The Dominican Association of Rum Producers (ADOPRON) revealed that differences in the interpretation and application of the ad valorem selective consumption tax have caused the State to fail to collect billions of pesos over the last few years, while also valuing the approval in the second reading of the anti-crisis plan project that seeks to clarify the scope of a provision already contemplated in the Tax Code.
The information was provided by the ADOPRON spokesperson, Circe Almánzar, on the program El Sol de la Mañana, who explained that the debate does not revolve around the creation of a new tax, but rather the correct application of a regulation in force since 1992 related to the determination of the retail price used to calculate the ad valorem tax applicable to alcoholic beverages.
“What is being done is clarifying a provision that has existed for more than three decades. We understand that some interpretations have generated significant distortions in the market and significant losses for tax collection. The important thing now is that the law is applied uniformly for all actors,” expressed Almánzar.
The guild representative explained that the ad valorem tax is calculated on the retail price of the product purchased by the final consumer, that is, on the finished product and not solely on some of its components. In that sense, she maintained that the divergences regarding the calculation base have generated competitive advantages for certain market players over companies that do apply the criteria established by the tax authorities.
“When there are different interpretations of the same provision, asymmetries are produced that affect competition. What we are looking for is for all market participants to operate under the same rules and on equal terms,” he indicated.
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ADOPRON considered that the provision incorporated into the anti-crisis plan strengthens legal certainty, provides regulatory clarity, and contributes to ensuring a more consistent application of the tax regime for the alcoholic beverage sector.
Likewise, the entity highlighted that the measure has the potential to improve the State’s collection efficiency, reducing room for divergent interpretations and strengthening tax control mechanisms.
Almánzar stated that the business sector must actively participate in seeking solutions to the country’s economic and fiscal challenges, especially in a context where public finances face growing pressures derived from subsidies and social investment commitments.
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“There are times when the private sector must act responsibly and contribute to building solutions. Institutional strengthening, transparency, and compliance with regulations are fundamental elements for the country’s sustainable economic development,” he stated.
ADOPRON guaranteed its willingness to continue participating in public-private dialogue spaces aimed at strengthening competitiveness, formality, and legal certainty, promoting policies that ensure a fairer and more predictable business environment for all productive sectors.
