Taxes and labor regulations keep small business illegal
Small and Medium-sized Business Confederation (Codopyme) president Issaachart Burgos says that the main obstacles to the legalization of around 700,000 small businesses are the burden of taxation and fringe costs of formal employees. He added that the burden of security costs is now higher than electricity costs. According to Burgos, this means that more than 1.6 million workers do not benefit from social security. Burgos explained that the small businesses are very vulnerable and they cannot afford labor suits or for their owners to get sick.
He said that Codopyme’s position is that benefits should be kept for employees who have them but the Labor Code needs to be adjusted to the country’s economic situation, where 98% of businesses are micro, small or medium-sized.
Source: DR1, Hoy
April 8, 2015
Category: DR News |