The Valencian employers’ association CEV considers that the Immediate intervention plan, reconstruction and recovery of the Valencian Community presented by the government of Pedro Sánchez includes some of their requests to face the crisis generated by DANA, but also warns that it could fail in terms of direct aid and the necessary injection in the medium term.
“The direction is right, although more support will be needed in the long term”sums it up Valencian Business Confederation (CEV)) by evaluating the battery of measures that Pedro Sánchez himself made public last Tuesday.
The regional employers’ association, while recognizing that it includes part of its demands, emphasizes that “certain aspects are missing” of those he had raised. Several of them are linked to the conditions established for the so-called Ertes-DANA due to force majeure.
Businessmen ask that the obligation to maintain employment for 6 months be removed for companies requesting these files and the “punishment” to reimburse the amount of contributions if they ultimately have to dismiss the worker, with a surcharge, late payment interest and the proposed sanction. For employers, “the catastrophe that candidates are experiencing requires empathy and not obligations that lead to permanent closure instead of helping.”
It also emphasizes that, for reasons of legal certainty, it is expressly stated that Ertes requests will be presented by work center, taking into account the different evolution of force majeure in companies that have several centers , and that companies whose workers have mobility difficulties or restrictions due to not having public or private means of transport.
Employers request that extraordinary compensation for cessation of activity be considered for all self-employed workers concerned and, failing that. the partial service compatible with the activity or the service due to a case of force majeure. Also that the accreditation of a commercial relationship or the invoices of dependent companies or members of the value chain serve as an indirect cause to benefit from Erte.
Direct aid and Plan Renove
Another aspect that will be evaluated is the direct aid announced, which, according to him, “depending on the cases, may be insufficient.” In this section, he criticizes the fact that beneficiaries must remain registered in the census of businessmen, professionals and servants until June 30, 2025.
In the tax benefits section, the exemptions in IBI and IAE concern the years 2024, date on which much of these taxes have already been paid. In order for reimbursement to be as agile as possible and generate liquidity, the CEV understands that reimbursements will be made automatically, and hopes that the possibility of extending this exemption until 2025 will be evaluatedor part of it.
The CEV welcomes the fact that the royal decree-law provides for special reductions for agricultural activities, but requires the establishment of a reduction in net income calculated according to the objective VAT estimation method for all domiciled economic activities in the relevant area, as well as in the special simplified personal income tax regime.
Tax deductions have also not been included for the self-employed (IRPF) and businesses (IS) for expenses necessary for the repair, replacement of damaged or lost property, as well as for investments in reconstruction or replacement fixed assets. In this sense, insurance coverage as well as direct assistance may, in many cases, prove insufficient.
The CEV insists on the need to a powerful Vehicle Renewal Plan. Otherwise, the resumption of commercial activities will be difficult and delayed, as will the mobility of affected workers who have lost their vehicles. The number of vehicles affected is already estimated at nearly 100,000 vehicles, including private vehicles and heavy goods vehicles.