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Business

Chamber of Commerce: Hoy No Circula Hurts Small Businesses

Although the Mexico City government has made over two million pesos from fines for violations of Hoy No Circula, the costs of the program have been much higher, says Canacope

Gerardo López Becerra, president of Canacope, photo: Notimex/Jessica Espinosa
By Rosalba Amezcua Whatsapp Twitter Facebook Share
2 years ago

The government of Mexico City has made more than two million pesos ($116,000) from fines for violations of the generalized Hoy No Circula since it went into effect on April 5, announced the Chamber of Commerce, Services and Small-Scale Tourism (Canacope). However, the program has cost car owners and the productive sector close to 2.8 billion pesos to date.

According to Canacope, an opinion poll reported that around 34 percent of the private vehicles that are prohibited from circulating on any given day are used by small businesses to move merchandise or to offer services.

In addition, most small business owners who are affected by Hoy No Circula need to pay between 300 and 1,200 pesos per day that their vehicles are prohibited from circulating, depending on the type of vehicle that they need, which may be a car or a truck. Costs related to renting vehicles that can circulate or changing supply routes represent an increase in daily operation costs between 10 and 20 percent.

Of about 260 grocery store owners who were polled, all of them excluded the possibility of modifying schedules for the delivery of merchandise, which the city government had offered as a possible solution to the high air pollution levels during the day. Most businesses in Mexico City operate between 7 a.m. and 10 p.m. Expanding schedules into the night would generate new costs in personnel, lighting, security and other areas that make it an unviable option.

The possibility of changing supply schedules would only be viable for large businesses, such as shopping malls and convenience store chains.

THE NEWS

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