Onpeco opposes new taxes on food

Santo Domingo.- The National Observatory for Consumer Protection (Onpeco) has urged lawmakers to carefully examine the Fiscal Modernization proposal, expressing its strong opposition to new taxes on food products, particularly those produced in the Dominican Republic. Onpeco emphasized that it had previously warned about the expansion of the tax base, but found it surprising that the current reform proposal targets agricultural products, exempting only seven. According to Onpeco, this move disproportionately impacts the country’s poorest citizens.

Onpeco’s statement highlights concerns that the proposed reform will unfairly place the tax burden on consumers, especially those with lower incomes, thus deepening social inequality. The Observatory argues that essential, high-nutritional products like sweet potatoes, yams, and potatoes should not be taxed, noting that most food staples, such as cassava, plantain, rice, milk, chicken, eggs, and bread, will remain exempt from VAT.

While Onpeco supports the idea of tax reform, it insists that such measures should be equitable and not harm consumers. It called on legislators to reconsider the proposal and instead focus on reducing tax evasion as a means to increase government revenue without burdening the poor.