Dominican tobacco taxes don’t go; The United States withdraws from the project

The Dominican Republic succeeded in getting the Congress of the United States (USA) to desist from applying a tobacco tax that, if carried out, would have hit the local tobacco industry very hard.

The information was offered yesterday by the Minister of Industry and Commerce and Mypimes, Víctor (Ito) Bisonó, who stressed that this was the result of a extensive work agenda developed by the Dominican delegation in Washington.

“This week we exhausted an extensive work agenda in Washington in follow-up to communications sent to both houses of the US Congress and we shared updated information on the impact of the sector on our economy and our concerns about the initiative,” the minister told through your Twitter account.

Bisonó appreciated the progress of the discussions of the so-called Build Back Better bill, a plan by President Joe Biden that seeks to contribute to the economic recovery of the United States from the impact of the coronavirus pandemic, and specified that the current version of the initiative leaves tobacco and Dominican cigars out of reach.

The minister recalled that This would have been a hard blow for this local industry because it would have had an impact on exports of up to 600%.

“Faced with the eventual approval of this law, our cigarette exports would be affected by more than US $ 650 million only in the first year and would lose more than 40,000 direct jobs and a higher number of indirect ones,” he said.


When these plans became known, much concern was generated in the country because if carried out it would have been devastating for the Dominican tobacco industry.

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Immediately, a delegation of Dominicans, led by Bisonó, traveled to Washington, United States, to speak with US congressmen about the negative impact that this measure would have on the country.

“From the Minister of Industry and Commerce and Mypimes (MICM) we continue to defend the sector, the jobs it generates and the almost 1.2 billion dollars that we will export this year, giving tobacco and our cigars the place they have earned as a star product of our country ”, highlighted the minister.

Exports to the US

Last April the MICM reported that tobacco exports to the US market grew by around 50% so far this year.

In January alone, some 5.9 million Dominican cigars were exported to that country, according to the agency.


During the last five years, tobacco accounted for 15% of free zone exports and 8% of total exports.


RD has become one of the largest exporters of organic tobacco in the world and the main producer of quality cigars.


Last year the tobacco industry was relaunched to consolidate the country as the world’s largest exporter.


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