jausten09 Posted October 30, 2014 Report Share Posted October 30, 2014 My husband was ordering tea through this small business near Pacifico and the owner said he would probably have to go out of business since all the small businesses are going to be over taxed and the imports have doubled or tribled in price because the new government is in line with the majority of foreign governmental policies and wants more large corporations to overtake the individuality of Mexican enterprises. Any thoughts on this. Link to comment Share on other sites More sharing options...
Oldyfeliz Posted October 30, 2014 Report Share Posted October 30, 2014 Makes sense, since the Gov't collects IVA from large businesses, and zero from small. Link to comment Share on other sites More sharing options...
cooper Posted October 30, 2014 Report Share Posted October 30, 2014 My thought is it sounds just like more ignorant gossip that is commonly heard at small businesses. Many goods are imported from countries that have trade agreements with Mexico. Arbitrary application of duty hikes is very much frowned upon. Link to comment Share on other sites More sharing options...
Guest bennie2 Posted October 30, 2014 Report Share Posted October 30, 2014 jausten, this is happening world wide. small business are going under, the corps are taking over. globalization is the name of the game. between taxes & regulations expect to see more of this. Link to comment Share on other sites More sharing options...
lakeside7 Posted October 30, 2014 Report Share Posted October 30, 2014 My guess is that this business is feeling the pinch of the increased IVA and the need to employ a bookkeeper and/or an accountant to conform to the Mexican Government requirements..many small business in the same boat Link to comment Share on other sites More sharing options...
ComputerGuy Posted October 30, 2014 Report Share Posted October 30, 2014 Also sad to say he has tremendous difficulties getting stuff over the border; he opened during off-season; he is duplicating much of what SuperLake and the place across from WalMart have, and he can't buy in enough bulk to get his prices truly competitive; not to mention the price of labelling in Spanish on top of all the paperwork costs; his wife is up north and he has to take care of both the business and the family, which causes his doors to often be closed... and on and on. I really like him as a person, so it is too bad. Link to comment Share on other sites More sharing options...
windstar Posted October 30, 2014 Report Share Posted October 30, 2014 When he first opened I discussed pricing with him. Some of his items were 30% more than the Gourmet grocery at the plaza across from Walmart & some items were double Walmart prices for the exact same product. Link to comment Share on other sites More sharing options...
R2D2 Posted October 30, 2014 Report Share Posted October 30, 2014 I just read this off Internet: "When you buy from a small pop or mom business, you re not helping a CEO buy a third vacation home.You are helping a little girl get dance lessons,a little boy get his team jersey,a mom or dad put food on the table,a family pay a mortgage, or a student pay for college.Our customers are our shareholders are they are the ones we strive to make happy. Thankyou for supporting small business." Unfortunately, new mexican government taxes scheme is making it hard for small business and also the government provides ample tax benefits to large multinational companies thus giving them the chance to import & sell at a more competitive price. This expansion of large businesses in our community (Autozone,Waltmart,Soriana,etc ) will bring better prices , but at a hard cost, many small businesses will be forced to close. That is the price of globalization. Link to comment Share on other sites More sharing options...
cooper Posted October 30, 2014 Report Share Posted October 30, 2014 For most small businesses here that paid a flat tax rate under the old tax scheme, things really haven't changed as far as the amount they will pay this year. What seem burdensome are the new accounting procedures that will be difficult to comply with, requirements involving computers and online invoices etc. . Many small business owners are computer illiterate and will have to pay for others to handle the electronic accounting whereas before it was far more simple. Link to comment Share on other sites More sharing options...
Snafu Posted October 31, 2014 Report Share Posted October 31, 2014 "This expansion of large businesses in our community (Autozone,Waltmart,Soriana,etc ) will bring better prices , but at a hard cost, many small businesses will be forced to close.That is the price of globalization." It's not just the Mom & Pop that don't get the money, the community loses. All that money is immediately sent out of Lakeside, never to return. All that money could have been spent back in the community. Link to comment Share on other sites More sharing options...
gringal Posted October 31, 2014 Report Share Posted October 31, 2014 "This expansion of large businesses in our community (Autozone,Waltmart,Soriana,etc ) will bring better prices , but at a hard cost, many small businesses will be forced to close.That is the price of globalization." It's not just the Mom & Pop that don't get the money, the community loses. All that money is immediately sent out of Lakeside, never to return. All that money could have been spent back in the community. If the employees are local people, some of the money will be spent in the community. But: the process of big business eliminating small business happened in the States, and the same process is taking place in Mexico. Just the expense and learning curve of the new sales reporting system is a big contributing factor. I'm guessing that eliminating the "informal economy" that is so much a part of the Mexican way of life is a probable target of the new requirements. Link to comment Share on other sites More sharing options...
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