How to Save Services and Commercial Sector?

Implementing a rescue plan in which SAT makes tax collections more flexible and IGSS assists employees is part of the proposal of Guatemalan businessmen in the commercial and service sector, given the crisis that has been generated by the health emergency.

Tuesday, March 31, 2020

After the government decided on March 29 to extend for two more weeks the measures restricting freedom of movement, which includes the transit and movement of people, crew, passengers and vehicles, between 4 pm and 4 am, businessmen from the commercial and service sectors visualize a dark outlook for the following months.

See "Post-Quarantine Consumption Patterns"

Julio Reyes, president of the Business Chamber of Commerce and Services (Cecoms), told that "... Until now, the service sector has been one of the worst hit economically, and now the commercial sector is increasingly paralyzed. Therefore, a strategy must be designed for these companies, not for profit, but to maintain jobs, because if the authorities do not provide timely support, what we will begin to see is a massive wave of layoffs in the commercial and service sector that will affect the most vulnerable population."

According to Reyes, the government has the possibility of alleviating the burden on the business community so that it can continue to maintain its commitments, in terms of payroll, service expenses, taxes and operations, while being closed. This can be achieved with the participation of the Superintendence of Tax Administration (SAT) and the Guatemalan Institute of Social Security (IGSS).

The economist Erick Coyoy, believes that "... can force a businessman to pay wages, when he will not receive income, resources must be sought through the Bank of Guatemala or the IGSS."

Covid-19: How are the outlook changing for businesses in the commercial and service sector in Guatemala?

We prepared for our clients the report "Information System: Impact Analysis of Covid-19 on Business" that answers these and other questions in times of uncertainty.

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