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Merchants call for government intervention in order to lower prices

SD. A group of merchants asked that the government intervene in order that different products which they sell in the country can reflect the reductions which the price of oil and other raw materials have experienced on the international markets.

Several business leaders explained that it is not fair that the consumers have to continue paying for expensive foods, when production costs have been reduced by more than 50%.

“The President of the Republic should convene talks, and not ignore the price increases which have been registered in the family food basket. He should convene talks with the productive sectors, with the industrialists, the farmers, importers and merchant leaders to analyze costs and prices of this family food basket,” said the president of the National Confederation of Commerce (Condecomercio), Gilberto Luna.

Luna, who placed a floral wreath at the Alter to the Fatherland, accompanied by other merchant leaders, said that petroleum has fallen by more than 50%, and that in spite of this, the country has not seen a reduction in prices, either in the family food basket or in the electricity rates.

At the same time, Ricardo Rosario, the former president of the National Federation of Merchants of the Dominican Republic (Fenacerd), said that he felt that the government has to study the establishment of clear profit margins for the products of the basic food basket.

“In the case of poultry, a chicken is costing producers close to 24 pesos, and they are selling at between 29 and 31 pesos a pound on the farm, there is an unreasonable percentage of a profit margin between the cosst of production to the sales price of the product in the farm. This business practice, which is not controlled by anyone, is passed along the entire chain until it reaches consumers at more than 60 pesos a pound,” he indicated.

Rosario said he felt that it is time that the government should tell the citizens why they have not reduced energy prices, and also they should explain, according to what he understands, that if the price of electricity does not go down neither can the prices of some products because of the incidence of the electricity component.

“If the government is savings on their oil invoice is more than US $1.3 billion, and with this they are paying the subsidy and there is a surplus because the electricity subsidy is some US $1.2 billion, then the government should compensate the merchant class and the consumers by at least a reduction of 15% in the electricity rates,” he made clear.

The deadline passes for assuming ITBIS

Last December, the principal supermarkets of the country announced that their establishments would assume the increase from 11% to 13% of the Tax on the Transfer of Industrialized Goods and Services (ITBIS) during the month of January.

This deadline has come and gone, and the consumers should not be surprised that from now on they noted increases in the prices of such products as chocolate, sugar, oils, yogurt and butter, that are those that have this special ITBIS.

Source: DiarioLibre

Category: DR News |

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Last updated October 22, 2016 at 2:00 PM
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