“Chinese unfair competition is suffocating Dominican trade,” denounces Iván de Jesús García

Santo Domingo. – The president of the Dominican Federation of Merchants (FDC), Iván de Jesús García, firmly denounced the unfair competition faced by Dominican businesses against Chinese capital companies that, according to him, operate without controls, evade taxes and violate the Labor Code. During the celebration of the FDC’s 51st anniversary, Garcia supported the inspections led by the General Customs Directorate, the Ministry of Industry and Commerce (MICM), and the Migration Directorate, but asked that the institutions act “with firmness and without fear” in the face of what he described as “a network of mafia-like operations.” “How is it possible that shopping centers are built in 90 days without permits from MIVED? That goods are declared at 5 dollars when local merchants declare them at 50? That the DGII does not supervise cash sales without tax receipts?”, he questioned with an energetic tone.

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The leader asserted that more than 90% of those establishments do not issue tax invoices, do not accept cards, employ illegal foreigners, and do not pay TSS or INFOTEP, causing an estimated ITBIS tax evasion of more than 70 billion pesos. “It’s not a matter of nationality, but of compliance with the law. If they want to join the FDC, welcome, but they must have their RNC and a list of associates. What we cannot allow is for them to destroy the formal economy of the country with money laundering,” he stated. García also warned that these practices are affecting the competitiveness of Dominican trade and putting pressure on the dollar exchange rate, due to the massive outflow of foreign currency. “While we take out loans from the banks to import, they move millions in cash and convert it into dollars. That outflow hits the entire country,” he emphasized. The FDC called on the government and regulatory bodies to strengthen fiscal, labor, and immigration surveillance, and to protect entrepreneurs who create jobs and fulfill their tax obligations.