Cigar tax kills Dominican factories

[NewsWhore]

More than 2,000 workers cold lose their jobs due to factory closures and staff reductions at eight cigar factories in Tamboril and other cigar-producing towns in the Cibao region. According to El Caribe, this is the result of a tax increase in the United States that elevates the tax on a cigar from a penny to 52 cents of a dollar. Considering that cigar making is the main source of income for the residents of Tamboril, generating, according to factory owners, RD$4 million in salaries each week, this is a terrible blow. The new tax has led to a decrease in orders and this is the last week to send product under the old rules. The new tax goes into effect as of 17 April. According to the article, such well-known houses as El Artista, Tabantillas, Tabacalera Palma, La Caya and Abeja Cigar will be affected by the downturn in orders. These factories are located in Tamboril, Gurabo and Villa Gonzalez. Tamboril is famous for its cigar makers, where techniques have been passed down from generation to generation, and cigar makers from the town serve as the basis for production in factories in Santiago and other cities, as far away as La Romana. Many "maestros" travel overseas as representatives of the Dominican cigar industry.

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