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Big distribution companies asked to reduce taxes to tackle inflation

Consumption has suffered again—and inflation surfaces as well. Immediately Steps. According to the National Institute of Statistics (INE), retail business…

By admin , in news , at May 17, 2022

Consumption has suffered again—and inflation surfaces as well. Immediately Steps. According to the National Institute of Statistics (INE), retail business sales remained at negative rates in the month of March, with a decline of 5.5% with respect to the same period of 2021. This is in contrast to the figures for February and January, which were higher than the figures for March.

National Association of Large Distribution Companies (ANGED) – is made up of best companies For retail distribution such as El Corte Inglés, Carrefour or Eroski – has devised a barometer in which it aggregates the measures Spain can take to relieve A sharp increase in prices, which affects the costs and margins of companies.

Employers say that: “Inflation has become a problem” of first order For businesses and homes. In a very hostile environment, the war in Ukraine has added even more tension to months of worrying increases in electricity and fuel prices. historical growth about raw materials, supply problems and international logistics constraints”.

«International situation due to force majeure and energy crisis in Ukraine redefine immediately Corporate strategy in very harsh scenario. This effort by the private sector must be accompanied by measures that help reduce costs and make the scope of action more flexible, if we do not want to lead the way. Collapse of many companies”, says Javier Milan-Estre, executive vice president of ANGED.

Solution

Gregorioleft, general director of the Institute of Economic Studies (IEE), explains in Barometer that: “The best solution is to address a tax deduction supported by companies, as well as plans for liberalization, which contribute to easing the pressure of increasing production costs, from which it would be possible to avoid a deteriorate higher than corporate margin.

Another great measure would be to dilute the twenty-four ministries, that is, reduce the composition of the state.Marcos Mostero, Professor at IE Business School

In the line of reducing taxation, Juan Pablo Risgo, a partner at EY Transforma, emphasized that: “To reduce the effect of inflation on company margins, it is possible to implement. new deduction In corporate tax, charged for recovery and flexibility mechanisms for investments aimed at improving the efficiency of production processes, freeing up resources for companies and giving them more margins to avoid transferring the effects of price increases. Went. production inflation due to an increase in

For his part, Fernando Castello, an economist and professor at ESIC, believes that: “It is necessary to proceed with an income agreement whichever include pension, Also, from the equity perspective, the tax deduction would be very useful for the lower income group. This measure adds to the current debate on a proposal to lower the income tax bracket, with the aim of preventing inflation from acting as an increase in bases, in addition to a loss of purchasing power, by an additional tax. highly unfair And keep quiet.”

Similarly, Professor Marcos Mostero of the IE Business School states that: “From a logical point of view, we should bet on a great economic state pact with accommodative measures and direct assistance to familiesTo further increase domestic consumption. The measures of this great treaty of economic state should be considered Tax exemption To give pause to families and companies.

“Another great solution would be dilute twenty four ministriesi.e. reducing the structure of the state; Monitoring the price level of basic consumption by reducing reduced VAT; Build a government-electric agreement to lower rates for homes and companies, through lower taxes and price limits; limiting consumer prices of basic raw materials; Continue beyond June 30 with rental income cap at 2%; and in relation to corporation tax, reduce the amount To slack off companies in favor of growth”, Mosteiro said.

Big distribution companies asked to reduce taxes to tackle inflation

2022-05-17 10:05:22