Supreme Court Upholds Hike in Mexico's Border States' Sales Tax Latin American Herald Tribune
go to original August 23, 2014

The Supreme Court building in Mexico City (Wikipedia)

MEXICO CITY – Mexico’s Supreme Court has upheld a law that raised the sales-tax rate in border states from 11 percent to 16 percent to bring it in line with the rest of the country.

That measure was part of a broader 2013 tax overhaul.

By a vote of 9-1, the high court ruled against a challenge on constitutional grounds brought by lawmakers with the conservative PAN party and some legislators with the leftist PRD party against the measure, which abolished a preferential value-added tax rate regime for border areas that had been in effect since 1995.

Justice Juan Ramon Cossio said the law making VAT-tax rates uniform across Mexico does not violate the principle of tax fairness.

One of his colleagues, Justice Arturo Zaldivar Lelo de Larrea, said it was not the function of the court to analyze Congress’ motives in passing the measure but only to determine whether or not it violates the constitution, adding that, in his judgment, it does not.

In a statement, the PAN’s leadership in the lower house said it regretted the Supreme Court’s ruling and urged the federal government to rectify the “regressive” tax overhaul package.

Read the rest at Latin American Herald Tribune

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