Business owners call for greater oversight of Chinese businesses in the DR

UNE requests DGII for greater oversight of Asian-owned businesses

The National Union of Entrepreneurs (UNE) has expressed its concern regarding the accelerated growth of Chinese businesses in the country, requesting that the General Directorate of Internal Taxes (DGII) focus its oversight efforts on this sector. According to Julio García Batista, president of the entity, various irregularities have been detected that require immediate review by tax authorities.

García Batista emphasized that the request responds to the need to ensure fair competition, noting that many of these operations handle significant economic volumes which, under the current scheme, could be failing to pay the corresponding taxes to the Dominican State.

Impact on traditional commerce

The business leader highlighted that the expansion of these establishments is directly affecting traditional businesses. According to his statements, these companies tend to strategically set up near more established local shops, which causes a drastic drop in the latter’s sales and, in critical situations, their eventual closure.

Wherever they go in a town, they set up next to the town’s largest traditional business and obviously end up breaking it, or almost breaking it.

Tax burden balance

For the UNE, the objective of this request is not only oversight, but to achieve a greater balance in the national tax system. García Batista argued that the State should seek resources by closing existing evasion gaps instead of increasing the tax burden on taxpayers who are already formally complying with their obligations.

• Greater control in sectors with high transaction volume.
• Expansion of the taxpayer base to alleviate the burden on formal businesses.
• Strengthening of collaboration between the UNE and the DGII to improve tax collection.

Finally, the business representative valued the willingness of the DGII Director General, Pedro Porfirio Urrutia Sangiovanni, to maintain an open channel of dialogue with the private sector. Likewise, he suggested that the implementation of electronic invoicing should be expedited, as there are still significant lags in the adoption of this system by various economic sectors of the country.