More Retail Closing but Help Is on the Way

Tax waivers and the injection of direct financial support for businesses remains a priority for the private sector as a way to alleviate the impacts of the COVID-19 crisis. Milenio reports that CCE Puebla President Ignacio Alarcón continues to work with state government officials to enforce a suspension of payroll taxes. If a suspension is impossible, Alarcón believes a program of deferred payments would be ideal. COPARMEX recently publicly urged President López Obrador to act as quickly as possible and to stop wasting precious time, as said by its president Gustavo de Hoyos on Twitter today. In his statement, de Hoyos makes it clear that if taxes cannot be waived, then companies’ cash flows must be maintained to facilitate uninterrupted salary payments. Meanwhile, El Universal reports that Mexico City Mayor Claudia Sheinbaum will be issuing 50,000 microcredits of US$500 to struggling micro businesses and families at zero interest for two years and with a four-month delay for the first payment. This, in addition to resources for public school students to help them cover expenses for class materials is only the first part of an overall Mexico City support package expected to be worth over US$34 million.

Meanwhile, major department stores have now announced more closings. Milenio reports that Sears, Liverpool and Palacio de Hierro will be closing their Plaza Satélite branches in Naucalpan until further notice. These measures are in compliance with the mandate of closing all major businesses in State of Mexico announced by Governor Alfredo del Mazo. Milenio reported that Cristian Morales, Mexico Representative of WHO and PAHO, warned that the country will probably soon have to implement an official curfew or even an absolute quarantine.