High Taxes and High prices in Public Services “burdens” Small and Medium-sized Industries in Carabobo

President of the Chamber of Small, Medium Industrialists and Artisans of Carabobo (Capemiac), Antonello Lorusso

 

 

 

The President of the Chamber of Small, Medium Industrialists and Artisans of Carabobo (Capemiac), Antonello Lorusso, asked the government authorities to reconsider the municipal tax rates that have greatly increased in recent months.

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Mr.Lorusso considered that the amounts to be paid must be adapted to the operational capacity of most SMEs that currently work at 30% capacity in the region.

He indicated that despite the fact that they have met with representatives of the Ministry of Economy, Production and Tourism of the Government of Carabobo, under the administration of Governor Rafael Lacava, with the aim of requesting a reduction of these rates, they have not obtained any effective response.

“The tax on the property record and the real estate tax are very high. (…) We ask for reviews to lower the rates, and the accumulated debts of each company, and to find a way to pay them under an agreement that does not affect the company’s assets. Banks are not lending, and if we pay these taxes, there is no money left or the purchase of raw materials is affected,” said Lorusso.

He pointed out that another of the problems faced by the small and medium industry in Carabobo is the increase in the price of basic services.

“They are charging electricity by the installed capacity and not by what we are consuming. They are charging for urban cleaning (trash collection/sanitation)by square meters of construction or property, but if we are working at 30%, we are producing 30% solid waste,” he stressed.

Lorusso pointed out that there are at least 400 companies affiliated with Capemiac that are affected by the lack of policies that encourage the growth of this economic sector.

He recalled that according to data from the International Council for Small Business, this type of business generated between 60% and 70% of employment and is responsible for 50% of the Gross Domestic Product (GDP) on an international scale by mid-2021.