Rum producers claim government measures clarify taxes on alcoholic beverages

Martín Adames
3 Min Read

The Dominican Association of Rum Producers (ADOPRON) positively valued the provisions included in the Anti-Crisis Plan presented by the Ministry of Finance and Economy, aimed at strengthening tax equity, legal certainty, fiscal traceability, and fair competition in the regulated productive sectors.

ADOPRON considered especially relevant the measure that clarifies that the Ad Valorem Selective Consumption Tax on alcoholic beverages must be calculated on the total value of the product acquired by the consumer, including all components that are part of its presentation and commercialization. 

The entity highlighted that this provision does not create a new tax obligation, but rather clarifies and strengthens the criteria that must be applied uniformly to all actors in the beverage sector to ensure they compete on a level playing field.

“A modern tax system needs clear, verifiable, and equally applicable rules. When there are differing interpretations on how to calculate the same tax, distortions are created that affect trust in the system, impact state revenue, and hinder fair competition,” stated ADOPRON.

The Association also supported the strengthening of fiscal traceability mechanisms for alcoholic beverages, cigarettes, and fuels, considering that these instruments contribute to combating illicit trade, protecting the consumer, preserving public revenue, and ensuring fair conditions for those who operate within the formal sector.

“It is essential that these traceability systems are applied uniformly to all taxpayers in the sector, avoiding differentiated treatment between actors competing in the same market or between domestic and imported products,” stated The Association.

The guild expects that the implementation of any traceability system be accompanied by permanent actions of oversight, consumer education, and institutional strengthening that allow for maximizing its results.

ADOPRON called on the National Congress to approve these provisions due to their importance in ending the differentiated treatments that have caused distortions in the alcoholic beverage market and damages due to unfair competition.

The Association reiterated its willingness to collaborate with the authorities and the National Congress on any initiative aimed at strengthening transparency, formality, fair competition, and the economic development of the Dominican Republic.

ADOPRON maintained that the country needs a tax regime that incentivizes investment, protects formal production, and prevents particular interpretations from generating undue advantages or facilitating tax non-compliance practices.

“When the rules are the same for everyone, the State wins, the consumer wins, the formal industry wins, and the Dominican economy wins,” the entity concluded.

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