High taxes on rum resulted in a 27% decline in sales of the alcoholic beverage. As reported, the alcohol producers figure they could have sold 7 million more boxes of rum from 2012 to 2019. They say that many former rum drinkers migrated to clandestine beverages with a 40% tax evasion. The rum producers want more government action against the illicit producers.
The data is from research carried out by economist Nassim Jose Alemany for the rum industry. The study contracted by the Dominican Association of Rum Producers (Adopron) reveals that today the Dominican Republic is the Latin American country with the highest luxury tax on rum. The tax increased from 53% in 2013 to 67% in 2019.
The Dominican rum industry generates more than 4,000 direct and indirect jobs and contributes more than RD$10 billion in taxes per year. With exports amounting to US$120 million and a presence in more than 70 markets, Dominican rum exports represent 81% of the country’s total alcoholic beverage exports. Dominican rum stands out for its contribution to the building of the country brand.
The United States, Chile, Spain, Italy, Russia and Japan are the main importers of Dominican rum. Dominicans purchase around RD$2 billion in rum a year.
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Listin Diario
Listin Diario
Adopron
Adopron
5 October 2020