A new study by the Guadalajara Chamber of Commerce indicates that a whopping 21 percent of all transactions in Jalisco occur in the underground or “informal” economy.
The study calculates that more than 74 billion pesos changes hands in the state’s comercio informal each year.
That equates to around ten billion pesos (735 million dollars) in lost tax revenue, says Miguel Alfaro Aranguren, president of the chamber.
Alfaro was speaking out as the busy holiday season got underway – a time, he says, when authorities should take stricter measures to clamp down on the underground economy.
Established, tax-paying business in the historic center of Guadalajara are badly affected by the influx of ambulant vendors, said Alfaro, adding that the problem persists despite many of hours of dialogue with city hall officials regarding the issue.