Cervecería Nacional Dominicana, the brewers of Presidente beer, continue to campaign against an increase in taxes on beer. The increase in taxes that would provide needed resources to the government, mean the price of beer would go up from RD$20 to RD$23 in colmados. Rafael Menicucci, chief executive of the beer company, insists that beer is not a luxury item, and that it is consumed by 70% of the lower income segment of the population. "With how hot it is here, beer cannot be a luxury item," he told the press. New taxes on alcoholic beverages and tobacco products are under study in Congress after President Mejía sent new bills seeking an increase in government revenues to compensate for dropping import taxes on finished goods. Menicucci said the increase in taxes would reduce beer sales. He forecast everyone would lose: the company and the government that not necessarily would see an increase in revenue. He advocated that the government go after those that do not pay taxes, instead of picking on those that pay. The beer tax would be increased from 20 to 30%. Likewise, taxes on cigarettes would increase from 20 to 50%. A pack of 20 cigarettes would cost 21 pesos, up from 16 pesos at present. Cigarettes are produced by E. León Jiménes, holding company of the brewery.
