In the Buenos Aires Legislature another step was taken so that businesses receive some relief while suffering the consequences of the quarantine
The project that proposes to free merchants affected by the pandemic from paying the corresponding ABL aliquots to June and July He took his first step when receiving an opinion from the Budget, Finance, Financial Administration and Tax Policy commission of the Buenos Aires Legislature.
Although most of the stores, except those considered essential, should have closed at the end of March, there were non-essential items that were able to open in May and June. However, since this Wednesday they closed again due to the new stage of quarantine, with which the situation will get worse.
That initiative that was discussed this Thursday, and that would arrive at the venue to be approved on Thursday 16 (next week is a holiday for July 9), proposes the creation of a special line of Banco Ciudad loans, with a subsidized rate of 12% per year and reduction of requirements compared to other loans, aimed at alleviating the situation generated due to the decrease in sales and invoicing.
“The objective is somewhat alleviate the situation of merchants, with whom we had been agreeing on a gradual reopening scheme for the premises, “explained the Buenos Aires Minister of Economic Development, José Luis Giusti, at the commission meeting, which was held through the zoom platform. The official added that they plan to expand other instruments in support of productive sectors and entrepreneurs affected by the situation.
Manuel Balestretti, of the AGIP (Government Administration of Public Revenue), also participated in the deliberations with the local deputies to explain how the proposed measures would be implemented
Merchants’ concern about not being able to open their premises
At the same meeting, the commission on Economic Development, Mercosur and Employment Policies, chaired by Marcelo Guouman (UCR), advanced with Gonzalo Straface’s (Let’s Go Together) project of administrative simplification, which eliminates various bureaucratic steps and makes it easier inherent to the authorizations of premises or activities and the requirements of control and inspection.
According to estimates from the Buenos Aires Trade Federation (Fecoba), some 20 thousand stores will not reopen after quarantine. And with the new restrictions the situation will be taxed and they estimate that the number of those who will lower the blind forever will reach 27,000.
So in addition to discussing operating protocols for the different activities, they insist on an order that is repeated from the beginning of the quarantine. It has to do with the provision of measures so that supermarkets do not sell non-essential products.
“At times when SMEs We are going through serious restrictions to sell our products, it is inconceivable that supermarkets can do it, further damaging the sector’s chances of recovery, “FECOBA said in a statement.
The head of the entity, Fabián Castillo, celebrated the decision of some municipalities of the Buenos Aires province who resolved to prevent the sale of footwear, toys and clothing until July 17.
“It is a very important symbolic step because there is an evident commercial disadvantage for the shops that are closed. If the supermarkets advanceWhen we can reopen we will no longer have anyone to sell to, “Castillo said.
Gastronomic and hoteliers ask not to pay ABL for a year
Along with the claim of a Tourist Emergency Law, hoteliers and gastronomy ask that the period corresponding to the tax exemptions and national state aid for the payment of wages, in the context of the quarantine due to the coronavirus pandemic in the country.
This was stated by Ariel Amoroso, president of the Association of Hotels, Restaurants, Confectioneries and Cafes of the City of Buenos Aires (AHRCC).
“The Emergency Assistance Program for Work and Production (ATP) it helps us a lot to resist the crisis and it will be necessary even after the measures are lifted of social isolation. In the case of hotels, we do not know when they will be able to open and, furthermore, we are sure that it will take time for the tourist flow to resume. For gastronomics, there are many reopening costs and also by protocol we will not work in a full room. If we take into account that the equilibrium point in the item is reached with 70% of operation of the room, we won’t be able to get that number. Many companies are also going to have debts, and they are SMEs or micro-SMEs “, he expressed live on Instagram with the tourist messenger.
Gastronomic and hoteliers, the hardest hit by the crisis
Hotel and gastronomy claim
The AHRCC estimates that the ATP program should be extended for at least six months after quarantine is complete and even up to twelve months in hotels.
To this he adds an order for the City Government suspend the ABL collection for twelve months. Also the cancellation for six months of the payment of Gross income, to support the process of reopening the premises.
Gastronomic and hoteliers ask not to pay ABL for a year
“We are aware that the government has its problems because the collection fell a lot, but we hope to work together with the aim of finding a better way out for everyone, “said Amoroso.
Hospitality and gastronomy they are among the activities hardest hit by the pandemic. With closed establishments and no income (or with minimal income, in the case of businesses with delivery and take away), the referents estimate that, until now, at least 12% of the companies in the sector have closed their doors forever.
From the Gastronomic Hotel Business Federation of the Argentine Republic (FEHGRA) they lead a day of visibility about the crisis. “We are still closed. Without your support, we will fail,” is the motto with which they promote the sanction of a Tourist Emergency law that covers these areas. So far there are eleven projects, but no progress has been made on any.
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