Engineer Iván de Jesús García president of the Dominican Federation of Merchants explained that the Federation he presides over has 432 Associations spread throughout the Dominican Republic. These, in turn, have 61,920 members, who carry out all commercial activities in the country.
García defined the Dominican Federation of Merchants as the most important business union in the country because it includes importers, spare parts, grocery stores, supermarkets, many of the grocery stores affiliated with the Supérate Card, fabric stores, electrical appliances and furniture, pharmacies , hardware stores and government suppliers.
Government agencies of Central America and the DR sign an agreement to defend consumers.
Interviewed by Héctor Herrera Cabral on the D’AGENDA program, which is broadcast every Sunday on Telesistema channel 11 and TV Quisqueya for the United States, the commercial leader said that all commerce is represented in the Federation, and that is what gives him the quality to be able to speak on behalf of the organized company, and of the different sectors that are grouped in the Federation.
Regarding the inflation levels reported by the Central Bank, Iván García recalled that the institution uses the annualized method, in this case, from May 2022 to the same month of this year. For that reason, those numbers are accurate.
“We all know that since November 2021, the Central Bank put the brakes on the economy by reaching a monetary policy rate of 8.5%, which led commercial banks to offer us trade rates of up to 18%, and credits of consumption between 22 and 30%, this affected that in sectors, for example construction, which is one of the most dynamic in the country, its growth was practically zero during the last year, that is, when the numbers of the Central Bank say that it is zero, we know, those of us who are in the hardware store, that it is -10%”, he reiterated.
He added that “then the economy slowed down, the inflation goal was achieved due to that slowdown in the economy, and there is already a time, like the last three months, when sales have fallen between 8 and 11% compared to the same period.” of the previous year, which must be revitalized”.
“And, necessarily, they had to release the brake and step on the accelerator a bit and make available 34 billion pesos of the legal reserve that banks have to lend them at a rate of 9%,” he said.
He warned that merchants want that 9% to reach micro, small, and medium-sized merchants and not remain among the main friends of banks in the Dominican Republic.
García suggested to the Central Bank that of the 34 billion pesos that it has liberalized, it allocate five billion to Promipyme at a rate of 4 to 6% so that this institution places them at 10 or 12% for MSMEs in the commerce sector. .
“That would obviously do a great service, first to the government, second to Promipyme, and third, since we are the first, to the country’s MSMEs, because the money that goes to Promipyme is sure that it is dedicated to the MSMEs of the country, and in this way thousands and thousands of small businessmen and women could benefit from those funds released at 9%.
He reiterated his request to the Central Bank to consider the possibility of injecting new resources within two months when evaluating the success of the recently released 34 billion.
“Obviously, since these funds are released, privileged clients come, who are the ones who keep the vast majority, because they have an extraordinary solvency index, but who does not have it, because they have always fed on cheap funds, and they restructure their their own debts and they will always be successful companies,” he criticized.
García says that there are increases in rice, sugar, onions and potatoes, but the prices of flour have been reduced.
Iván García reported that rice, sugar, onion, potato and black beans have experienced price increases, while flour prices have dropped considerably.
The president of the Dominican Federation of Merchants asked the Minister of Industry and Commerce, Ito Bisonó, and the director of Proconsumidor Eddy Alcántara to review what is happening with the price of sugar since the 125-pound bag went from RD$2,985.00 to 3,600.00 pesos . which implies that the increase has reached 15%. It is necessary to remember that the only products subject to price controls in the country are fuels and sugar.
Without these prices being set by the State, then when the cost of sugar skyrockets, we don’t understand why, the people need an explanation, and so do we, then refined sugar is also being marketed at RD$3,600.00, when 125- sack of a pound was sold between 3,200 and 3,300 pesos.
“The same thing is happening with the price of onions, we used to sell a pound for 16 pesos, and now it is between 24 and 28 pesos, that is, the bag has gone from 800 pesos to RD$1,400.00, which implies that the consumer You will have to buy it again for between 40 and 45 pesos,” he explained.
Iván García said that the same situation occurred with the potato several days ago. The kilo was sold at 35 pesos and currently costs RD$50.00.
“We are talking about the wholesale costing 24 pesos per pound, but in detail you have to add the 10 or 20% that the owners of grocery stores and supermarkets earn in operations,” he clarified while being interviewed on the D’ AGENDA program .
Another product that has risen in price is black beans, which has gone from 36 pesos a pound to 42; pints have remained at the same price, while red beans have dropped from 58 pesos a pound to RD$52.
“The rice that we sold between RD$2,900.00 and 3,100 pesos, the selection of 125 pounds is at RD$3,300.00, which implies that it increased by 10%; We always told people that said product cost between 24 and 25 pesos per pound, now you have to add two pesos.
However, he clarified that flour, which is the raw material for making bread and pasta, was reduced from RD$2,500.00 a bag to 2,100 pesos, for which reason he demanded that the prices of its derivatives be lowered because they increased when the cost of flour went up.
Iván García criticizes banks for charging companies up to 8% for credit card transactions and complains about the DGII’s treatment.
The president of the Dominican Federation of Merchants, Iván García, complained about the high commissions charged by CardNet and VisaNet companies to businesses for transactions made with credit cards, which amount to up to 8%.
García also criticized that the General Directorate of Internal Taxes DGII has not invited organized commerce to learn about, present and approve the law that creates electronic invoicing.
“Gentlemen, here are businesses that banks still, in intermediation, earn 5, 6, 7 and up to 8% on each transaction that is made in those businesses, so those rates have to be greatly reduced because the banks created two companies that are their own, that are the intermediaries between the cardholders and the bank, and there are sectors here that are only giving you 1%, on the other hand, they charge us 26% of the sales of the entire country to the small and medium-sized supermarkets that we represent the percentage indicated above,” he lamented.
He said that these large chains that are treated with privileges by these credit card companies process only 16% of sales in the country, 26% of supermarkets in the Dominican market, and the other 50% is through grocery stores. that are already receiving VeriFone, which is why the 400 and up to 500% difference in rates charged to MSMEs in the commerce sector is not explained, compared to the large chains.
“The companies that are owned by the banks, which are CardNet and VisaNet, must be restructured because small, micro, and medium-sized commerce is impossible, and everyone knows that debit cards are being used more here than credit cards, that is, , they charge a commission for money that the client already has.
Criticizes DGII’s treatment of organized trade
Iván García criticized the treatment given by the director of the General Directorate of Internal Taxes by excluding organized commerce in the discussion of the recently approved Electronic Invoice law.
“At no time did the Director General of Internal Revenue invite the Dominican Federation of Merchants to discuss the issue of the Electronic Invoice; We even sent a letter to the president of the Finance Commission of the Chamber of Deputies to listen to the trade representatives, and his response to some business congressmen who raised the issue was that the director of the DGII had already reached a consensus with me. , which was not true,” he lamented.
He recalled that the Dominican Federation of Merchants proposed electronic invoicing with longer terms for micro, small and medium-sized merchants when the fiscal printers did not work.
“Here the terms were completely different from those in Chile; in the Dominican Republic they are giving three years, while in the South American country they are giving between seven and ten years, and they created a figure, which they have internally in the DGII, who are the large taxpayers of the Towns, ”clarified the business leader .
He argued that through this modality in small towns, the most extensive business, even if it is an MSME compared to a large city, for Internal Taxes it is an important taxpayer.