The president of the Dominican Federation of Merchants (FDC), Ivan García took advantage of the attendance of President Abinader to the Commerce Day celebration at the Santo Domingo Barceló Hotel to urge the President to promote equal conditions in business for all. García called for the government to confront tax evasion and fraud in employee hiring on behalf of Chinese business people now doing business in the Dominican Republic.
García described to President Luis Abinader a series of unfair, tax evasion and abusive practices against workers that he claims are committed regularly by Chinese merchants. García said this represents a reduction of costs for Chinese-owned businesses and thus is in the detriment to Dominican competitors.
As reported in Diario Libre, García said that these foreigners are known to incur in the practice of firing employees on day 89 (before completing three months) so as not to register them in the social security agency, avoiding paying labor benefits. Furthermore, he complained the Chinese sell in cash and do not provide invoices with tax receipts to most of their clients.
The businessman also denounced that the Asian business people have been allowed to pay a mere 1% tax when they import merchandise, and not 18% of Itebis and 27% of sales, as others pay.
“There are foreign businessmen who import RD$200 million in merchandise and do not declare that they sell anything. For them, it is easier to pay 1% of their assets, which are two million pesos, and not pay 18% of the Itebis or pay 27% of the profits. This way the Chinese can say they are paying taxes to the DGII (the Tax Agency), but it is 1% of their inventory; they do not report the sales,” García stated.
“We want fair competition, where we all pay our taxes, where all our employees are registered in the Social Security Treasury (TSS) to guarantee health and pensions,” he said.
He requested the Customs Agency require that these foreigners pay their taxes when they import goods.
“We are no longer just talking about chicken legs, but we are already talking about imports at the industrial and commercial level,” he observed.
President Abinader responded: “We have received messages regarding fiscal control from different sectors; we are going to insist because there has to be equality and, especially, in the tax part. There cannot be a sector, regardless of the origin of that sector, that has privileges. The important thing is to continue with this communication,” said the President.
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Diario Libre
23 October 2023