Santo Domingo.- The Dominican Federation of Textile Workers (Fedotex) voiced concerns on Wednesday regarding the potential negative impact of the newly proposed tax reform on the country’s textile sector. Fedotex President Eduardo Grullón acknowledged that tax reform is necessary for economic stability, but emphasized that the proposed measures could disproportionately harm the textile industry, which is a key contributor to the national economy.
The federation pointed to Law 56-07, which designates the textile, clothing, footwear, and leather manufacturing sectors as national priorities. This legislation has been crucial for fostering competitiveness and supporting small, medium, and micro-enterprises in these industries. The elimination of tax exemptions, as proposed in the reform, could affect around 70,000 formal workers, posing a risk to the sector’s sustainability and job stability.
Fedotex urged the government to engage in dialogue with industry representatives to find balanced solutions that protect employment and ensure the continued growth of the textile sector. The federation stressed that maintaining a favorable business environment is essential to preserve the gains achieved through this priority status.