2013News

Retail sales down 5-15%

Enresto Martinez, president of ONEC, the association of large department store owners, says that retail sales were down by 5-15% in the first half of this year. He says that personnel have had to be dismissed and that new stores have been opening at a slower pace. Diario Libre says that Central Bank statistics show a decline of 2.9% in the commercial sector and 4.3% in the construction sector. Economists attribute this in part to the effect of the November 2012 fiscal reform that added new taxes and increased others. The organizations are now complaining that Internet sales, which are not affected by the high taxation, are growing as people go shopping online. Purchases of up to US$200 are not taxed. They also criticize the increase in informal sales, such as the used clothing market, that are not subject to all the governmental charges or taxation as formal businesses.