Economy August 10, 2016 | 9:03 am

Fuel subsidy means RD$2.0+B in lost revenue, ‘unfair’ competition’

Santo Domingo.- The government’s monthly tax break on aroundfour million gallons of fuel means more than RD$2.0 billion in lost revenue, asituation the Society of Fuel and Derivatives Companies (SEC), says should be eliminatedor geared toward benefiting consumers.

It said the tax break on fuels distorts the market to the detrimentof consumers, distribution companies and state coffers.

The SEC said it agrees with Industry and Commerce minister Josédel Castillo’s statement, that current market conditions have changed since thesubsidies were established, and therefore must be repealed.

The SEC said the NationalGasolines Retailers Association and some transport business leaders that get thesubsidy have stated their concern on the issue, and agree on calling it anunfair practice that violates regulation on oil prices and “have been an engineof crimes.”

Quoted by eldia.com.do, SEC president Demetrio Almonte estimatesthe practice’s fiscal impact at more than RD$2.0 billion per year in lostrevenue. “If future conditions warrant the subsidy to transport unions, it mustbe channeled in a more controlled manner, ensuring it reaches its realbeneficiaries. The subsidy should be channeled through regulated servicestations to ensure greater transparency.

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