2012News

State loses RD$5 billion in fuel ‘mafia’

The National Association of Gasoline Retailers (Anadegas) is demanding that the authorities put an end to the illegal fuel sales that cost the state in excess of RD$5 billion a year. Anadegas president Rafael Polanco told Hoy reporters that in violation of Law 407-72 and other administrative resolutions, the government is tolerating the entry of unregulated actors to the market who sell fuel. This unfair and illegal competition has created huge tax evasion issues.

He said that these new players deal in fuel that entered the country without paying taxes since it was intended for consumption by electricity generators, and which Polanco says is contraband anyway. None of this fuel is sold in traditional gas stations. Polanco pointed out that Regulation 307 of Law 112-00 established the rules and regulations that control the fuel market, and therefore Anadegas will continue to complain and call for an end to this ‘mafia’. He noted that one of the articles in the tax reform might help control the situation.