8 Jun, 2020 @ 23:01
1 min read

Business associations ask for ‘cheap borrowing’ and reduced taxes as two thirds of traders in Spain’s Vega Baja see revenue drop by over half

Orihuela Scene

A SURVEY in the Vega Baja region of Alicante has revealed that only 17% of businesses managed to continue trading throughout lock-down.

The vast majority of the rest (80%), meanwhile, have seen incomes drop by over 50% and staff laid off across the board.

Two organisations, the Federation of Business Polygons of the Valencian Community (FEPEVAL) and the Association of Entrepreneurs of the Vega Baja (ASEMVEGA) carried out the survey.

In the main, the drop in revenue was forced closure due to legal obligation (50%), but 23% cited lack of demand and another 21% said it was just impossible to trade.

Worst hit were hospitality companies, wholesaler and retailers and motor repair shops.

Others hit badly include agriculture, livestock, forestry, fishing, estate agents and those involving health activities such as gyms and sports centres.

The survey revealed that the key thing to consider as Spain approaches the ‘new normal’ is that no new tax measures should be adopted as companies recover.

Also, ERTE and other payments should be paid immediately and tax refunds expedited back to the self-employed.

ASEMVEGA insists that Vega Baja companies should have ready access to lines of finance, allowing for cheap borrowing to help with rebuilding a future.

Diariodelavega also noted other demands for authorities to consider are: 

  • Infrastructures that provide competitiveness through the territory
  • Promotional campaigns to attract both residential and family tourism
  • Local government becoming an ally to entrepreneurs
  • Expediting compensation payments promised after the flooding in September 2019

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