This bad augury it has been issued by the Union of Self-Employed Professionals (UPTA) who thinks that the VAT increase in three points can end causing a greater retraction in consumption which could lead the self-employed who are in charge of small businesses, to close them due to a flagrant lack of profitability.
UPTA believes it is feasible that many small businesses even see a lack of sales volume increase. These small businesses do not have alternative sources of financing other than the commercialization of their products, many could be forced to to close. Many freelancers who have small businesses will only have the possibility of absorbing the 3 points of VAT increase in their income.
On the other hand the rise of Value Added Tax at 21%, which will be effective from next Friday when is authorized by the Council of Ministers, you can put an end to the summer campaign and sales of small businesses. Besides, the cancellation of the Christmas bonus of officials announce a catastrophic Christmas campaign.
UPTA supports the maintain a super-reduced VAT of 4% products that already fall into that category and even expand the list due to the strong social impact that can cause many of these products to pass a VAT of 21%. On the other hand the UPTA is aware that with the new measures there is going to be a new recession on recession in 2013 which will slow down the activity of entrepreneurs.
Source: Information | Picture: The Traveler