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LatinNews Daily - 01 April 2020

In brief: Mexico’s private sector urges tax relief for businesses

* Francisco Cervantes, the president of Mexico’s national confederation of industrial chambers (Concamin), has warned that the lack of tax relief offered to Mexican busineses by the government led by President Andrés Manuel López Obrador amid the coronavirus (Covid-19) emergency could result the collapse of the domestic economy. Cervantes said that “the consequences of this health emergency can’t just fall on companies. The government has to mobilise a rescue fund similar to that of the US or European countries, otherwise thousands of companies will be condemned to bankruptcy”. On 30 March López Obrador decreed a national emergency until 30 April that forbids all but essential acitivty. But López Obrador has insisted that businesses should pay the complete salaries of workers during the emergency. Concamin represents 123 chambers and industrial organisations that together make up around 30% of GDP in Mexico. Cervantes highlighted that just 0.22% of Mexico’s businesses are classified as large businesses, with over 250 employees. Micro businesses, with up to 10 employees, make up 95%, and would not have the resources to assume the costs of the economic crisis produced by the emergency. Mexico’s foreign minister, Marcelo Ebrard, has warned that businesses that oppose these actions or undertake unjustified layoffs will be liable for administrative sanctions and could even face criminal charges.

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