The Dominican Restaurant Association (Aderes) states that the government’s proposed tax reform will increase operational costs. This will directly affect Dominicans’ purchasing power and likely reduce their visits to restaurants.
They argue the reform will negatively impact the middle class whose already strained purchasing power impacts their daily lives.
Aderes’ president, Rafael Omar Cepeda suggests that the reform, coupled with other measures like an increase in electricity costs and Real Estate Tax (IPI) will increase product prices.
Cepeda states, “The proposed reform poses a threat to the industry and many restaurants’ sustainability.”
Rafael Omar Cepeda also highlights that the proposed elimination of the tourism incentive law will negatively impact the restaurant sector. It hinders efforts to develop Gastronomic Tourism, which is a growing and successful industry.
While the Dominican Republic has been successfully positioning itself as a gastronomic destination, Cepeda notes there is still work to be done. He adds that Dominican restaurants encourage national agriculture through the use of locally sourced products.
He says, “If the reform goes ahead as proposed, consumers will feel the financial strain. Increased costs for everyday items will limit spending on things like dining out.”