Mexico to Offer Tax Breaks to Curb Evasion Reuters
go to original September 11, 2014

MEXICO CITY - President Enrique Pena Nieto said he would sign a decree to give small businesses a break on sales taxes if they register with tax authorities as the government seeks to bolster low collection rates.

Nearly 6 in 10 Mexicans work in the informal sector as street vendors, domestic employees and running businesses that are not registered with the federal tax collecting system.

A fiscal reform last year introduced a series of incentives and tax breaks designed to lure more people to register with authorities and grant them benefits, such as public healthcare, subsidized home loans and retirement accounts.

Pena Nieto's new decree will exempt vendors who make less than 100,000 pesos (US$2,887) a year from having to pay the country's value-added tax as well as special sales taxes imposed on items such as soft drinks, cigarettes and junk food.

Read the rest at AsiaOne

Photo: Presidency of the Republic

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