“Unlocking Island Prosperity: Coparmex Pushes for Tax Breaks”

Cozumel business leaders, represented by the Employers' Confederation of the Mexican Republic (Coparmex), are lobbying federal legislators for tax incentives to promote fair competition for island regions. Coparmex President, Willma Padilla Barbosa, has stated that the organization is seeking approval for a potential reduction or reinstatement of the Value Added Tax (VAT) to its pre-2013 levels. They are aiming to decrease the current 16% VAT to 11%, arguing that the abrupt increase in 2013 negatively impacted the economies of Cozumel and other islands in the state.

Padilla Barbosa has declared that they will persist in their efforts to secure equal conditions for business development. They also aim to secure benefits for the residents of Cozumel and other Quintana Roo islands. She explained that island living involves higher costs for services that are also available on the mainland. The transportation of raw materials by sea increases business costs, which in turn leads to higher prices for the public. This puts island businesses at a disadvantage compared to mainland businesses, which can offer lower prices, resulting in greater profit margins and savings for consumers. This disparity also affects the islands' competitiveness in the tourism sector.

Padilla Barbosa also highlighted the issue of housing, stating that purchasing a house on an island can be up to 30% more expensive than on the mainland. This results in a costly rental market and similarly high costs for other services. Even healthcare is more expensive on the islands, with many specialties lacking. Despite the expectation of easy transportation, this is not the case, especially after dark when leaving the island is not possible.

The Coparmex President emphasized that island residents and businesses face the same tax obligations as those on the mainland. The organization is now urging both current and incoming federal legislators to consider this issue. Padilla Barbosa stated, "The legislators need to understand the unique challenges of island living. They are unfamiliar with the area and do not realize the high costs of living and running a business on an island."