Dominican Republic Cigarettes Association member companies are calling for the government to act against the illicit trade in cigarettes. The local industries are calling for political will to put an end to the contraband.
They estimate the government has sacrificed RD$1.5 billion a year in possible taxes due to the contraband since 2012.
The cigarette companies complain that the unfair competition affects their sales, which are taxed. Asocigar estimates that around 300 million contraband cigarettes are sold every year, which is 22% of the total sales volume in the country. Executive vice president of Asocigar, Marcos Bisono said that the sales are a reflection of organized crime that affects national security. Asocigar estimates that 40 contraband cigarette brands are sold in six of every 10 colmados nationwide, in violation of Public Health Law 48-00 and tax laws.
Asocigar says they agree with critics of increasing taxes when the government could increase its revenue by regulating thousands of informal traders who do not pay taxes and represent unfair competition for their law-abiding counterparts.
http://www.asocigar.org.do/acercadeasocigar/–
http://acento.com.do/2016/economia/8358815-asocigar-reclama-voluntad-politica-la-ilegalidad-contrabando/
