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BUSINESS OWNERS REQUEST TIMELY ACTIONS BY THE AUTHORITIES IN ORDER TO PROTECT JOBS AND ECONOMIES IN THE FACE OF COVID-19

Mexicali, B.C.- Derived from the situation that currently exists in the world regarding the pandemic of COVID-19, and which is already present in Baja California. The business sector of Mexicali closes ranks in order to contribute to preventive measures, and with the firm responsibility of privileging the health of workers and of society in general at all times.

Business organizations, seeking to cope with the complications that may arise due to CORONAVIRUS, request the authorities; Jaime Bonilla Valdez, Governor of Baja California and Marina del Pilar Ávila, Mexicali City Mayor, hold a meeting in person or, when appropriate, schedule a phone call in order to jointly establish pertinent measures of mutual support.

The fact of extending the period of protection at home will imminently bring about events such as the decrease in customers, lower sales, and even the temporary or total closure of different businesses and companies.

The consequence of the global crisis and the suspension of human activities due to the pandemic will overflow strong problems in the economy, especially paralyze the flow of the monetary resource.

As an example of the above, we will remember the effects of the influenza that our country suffered in 2009 and that cost 7% of the Gross Domestic Product, that is, 57 billion pesos; It also generated a drastic decrease in commercial activity, which led to a reduction in personnel and serious effects on economic development.

Currently, the spread of the Coronavirus has already caused a suspension of activities of the Mexican Stock Exchange by registering a drop of more than 7% and a general price of $23 pesos per dollar. In order to contain the situation, it is necessary to strengthen a unique leadership, so the CCE and the business community are willing to collaborate by carrying out strong actions and everything necessary to prevent further damage.

The city’s business sector reiterates its commitment to work in a coordinated manner to face the contingency, but they also point out that this will undoubtedly unfold a series of complications in the local and global economy, for which they ask for urgent measures to be taken at the local and national levels, to preserve employment in the State, which we point out:

1.- Temporary suspension of the collection of local taxes, such as: fees for water supply, for construction, payroll tax (ISRTP), lodging tax, as well as all increases recently made to various items, as in happened with gasoline. (Property tax is not included)

2.- Temporarily suspension of the collection of federal taxes, such as: Income Tax, Value Added Tax, INFONAVIT fees, as well as the payment of worker-employer fees to the Mexican Institute of Social Security (IMSS). (Dividing the payment of that period in the following 12 months).

3.- Extend and/or suspend the validity periods of: licenses, permits, and authorizations for up to 90 additional days. As well as the suspension of the terms in the acts of inspection and administrative appeals by the local and federal authority.

4.- Financing for Small Businesses through Nafinsa to reactivate the economy: emerging support with loans to the sector and provide preferential rates. Support so that banking institutions do not generate interest on collections in the next 3 months and grant 12-month payment facilities as well as allowing the immediate opening of small businesses in households, derived from the shortage of basic consumer products in some areas (most vulnerable).


5.- Establish a State Emergency Committee, made up of various leaders representing business organizations, in order to provide support, as the needs arise, due to the contingency (regulatory improvement).

6.- Provide due support and monitoring on computer platforms, for administrative procedures, as well as for compliance with tax obligations.

7.- Guarantee the supply chain and avoid abuses: this means the Federal Consumer Protection Agency guarantees fair prices and sanctions to anyone attempting to unjustifiably increase prices derived from the Coronavirus crisis.

8.- Give a grace period of 60 or 90 days in the collection of any credit granted by the State Government and the Federal Government, without affecting the credit history and non-accumulation of default interest.

9.- 90-day waiver of the payment of electric energy service provided by the Federal Electricity Commission (CFE), dividing the balance of that period in the following 12 months.

10.- That the companies that are carrying out works to the State or Municipality can collect an estimate of the work carried out up to this point so that they have income and flow to cover payroll payment.

11.- That the flow of goods is facilitated by speeding up inspections at the checkpoints.

Of all the proposals made, only a deferment or temporary suspension is requested as to their compliance, not an exemption. The above, under a reasonable period of time with the measure that the contingency represents, for at least 3 months.

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