3 April 2020
The Weekly
Italy

Over 50 well-known brands including Rinascente, Coin and OVS, whose most revenues derive from retail sales, have sent the Government a series of proposals to deal with the emergency of the stop all activity and for recovery. They have five proposals to manage the emergency phase:

  1. Starting from the assimilation of non-food companies to the supply chains in crisis as defined by Cura Italia.
  2. Payment obligations should be frozen or securitized. "Not cancelled - specify the signatories - but postponed until at least September: no company must go bankrupt for this crisis".
  3. As regards to rents, the retailers propose a revision of the contractual conditions also post-reopening, given the foreseeable slowness of the recovery. “Non-payment of the rent - they specify - for periods of non-use of the shops and a reduction at least proportional to the loss of turnover in the following months". In addition, the securitization of suspended rents is required, with a guarantee of the state and tax relief for the owners, by means of a tax credit in proportion to the discounts granted.
  4. The fourth proposal concerns the postponement, "at least in September", of the terms of payment of VAT and contributions, as well as the cancellation of Imu and Tari for the period of the crisis and the reduction of the IRES rates, "at least until the end of 2021.”
  5. The fifth proposal, on the other hand, concerns the decriminalization of tax offenses, for non-payments relating to regular returns. During the re-start phase, contributions of 50% until 2021 are expected, "such as to encourage the least possible use of layoffs, but also increased tax deductions on investments and marketing expenses.

The companies also ask for consumer credit to be facilitated and for deferred payment solutions to be provided, "especially through digital payment instruments". Finally, tax deductions and vouchers for individuals to purchase goods and services from companies operating in crisis sectors are proposed. "The total blockade of our activities - they write in the letter - is becoming unsustainable in the absence of suitable measures to deal with the emergency. We don't ask for money, we ask for measures. " Non-food retail in Italy generates €110bn in turnover, employs about one million workers, pays almost €5bn in contributions and over €20bn in VAT and pays at least €15bn in rents.

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