ONPECO warns of potential impact of tax reform on consumers

Santo Domingo.- The National Observatory for Consumer Protection (ONPECO) has issued a warning regarding the proposed tax reform, urging the government to minimize the impact on consumers by avoiding taxes on essential items such as food, housing rentals, and public services. According to ONPECO, consumers have historically borne the burden of tax reforms, which often benefit productive sectors at the expense of consumers.

The organization suggests that taxes should be levied on harmful products such as sugary drinks, tobacco products, and betting banks. These products are considered vices that harm health and should be taxed accordingly. ONPECO argues that even if prices increase, consumers will not stop consuming these products because they are addictive.

In addition to increasing tax revenue, taxing harmful products would also benefit public health by reducing the consumption of substances that negatively impact citizens’ health, including mental health. Gamblers who dedicate their income to betting often end up in financial ruin, and taxing betting banks could help fund treatment programs for related mental health issues.

ONPECO also advocates for eliminating tax exemptions that were once necessary for economic development but are no longer needed. The organization suggests that exemptions should be granted to promote clean energy production, making solar panels cheaper and encouraging the transition to renewable energy sources.

However, ONPECO strongly opposes taxing food and inputs necessary for producing them. The organization warns that the population cannot afford additional price increases beyond those caused by the pandemic and subsequent inflation.

Finally, ONPECO proposes that taxes collected from vices should be dedicated to treating the diseases they generate. This could include funding high-cost medications for lung cancer, liver cancer, and mental illnesses related to gambling.