| | |  News Around the Republic of Mexico | June 2009 
Restaurant Industry Seeks Gov't Intervention
 Yvonne Reyes Campos - Rumbo de México
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| | (AP/Alexandre Meneghini) | |
The national restaurant industry has officially asked the support from Congress in enforcing deductibility of up to 50 percent on restaurant expenditures for businesses nationwide.
Manuel Gutiérrez, vice president of the restaurant chamber Canirac, said that the swine flu has caused the industry to incur 1.25 billion pesos in loses. He indicated that the industry urgently needs support so that it can finally exit this crisis.
The restaurant sector has been the industry most deeply affected by the crisis with over 7,000 establishments having closed their doors to hungry customers, as the spiral from the recession has only been made worse by the recent swine flu outbreak, he said.
PAN legislators in Congress' Permanent Committee are already working to present a nonbinding agreement to the Calderón administration to help the industry revive with federal aid through the Finance Secretariat.
PAN deputy Francisco Dávila García assured that all the major political parties would come together behind such a proposal. A economic downturn in the industry makes party unity on the issue even more important, as urgency is needed after the serious lowering in consumption over recent months, Canirac officials said. Deductibility on restaurant purchases can save customers up to 2.75 billion pesos in taxes annually, a great incentive to come in and grab a bite, Gutiérrez said. In addition, as a monitor against fraud, only credit cards and checks will be accepted for deducted purchases.
The Canirac vice president also added that the efforts to promote tourism throughout the country have not been enough to truly help struggling small and medium size businesses recover in the country, hurting one of the nation's biggest forms of employment.
"The problem with the flu is that it was the last grain of sand to reach the beach. First we were hit by the anti-tobacco law and the problems of insecurity . now in the north of Mexico over 60 percent of all establishments are shut. then came the recession and the swine flu," he said.
He added that many restaurants nationwide bled money for over 10 days as fears of the swine flu forced closures nationwide in April and May. |
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