Dominican Republic pays cost of rum smuggling

The widespread smuggling of rum and cigarettes cost the Dominican Republic US$45.5 million in lost tax last year.

Illicitly produced and sold rum and cigarettes cost the Dominican Republic US$45m in lost taxes last year

As reported by Dominican Today, the country’s industry and commerce minister José del Castillo revealed the information at the launch of the government’s Campaign Against Tax Evasion, Smuggling, Counterfeit Alcohol and Tobacco.

“It’s time to revert it before it becomes uncontrollable,” de Castillo said of the country’s black market for rum and cigarettes, adding that this impacts the government, consumers and producers.

A number of different countries have embarked on a crackdown on illegal alcohol in recent years as increasingly more revenues are lost.

The UK government recently published a consultation paper looking at ways of combating the sale and production of fake alcohol, which authorities claim costs the government £1.2 billion in lost taxes a year.