Business Leaders in Mexico Oppose Tax Boosts on Border Sales, Food and Medicine Frontera NorteSur
go to original July 29, 2013

Mexican business leaders in the northern border region are mobilizing against an increase in sales taxes that could result from a looming tax reform. In a petition to their federal government, the presidents of 12 border area chambers of commerce argue against a possible sales tax hike on the grounds that it would harm local businesses and benefit competitors just across the border in the United States.

Mexican residents of the northern border region currently pay an 11 percent value-added tax, known as IVA, which functions as a sales tax on many formal commercial transactions, while residents in the interior of the country pay a 16 percent tax. Business leaders have long maintained - and continue to do so - that their proximity to the United States with its lower sales taxes makes a reduced IVA in the border region a necessity.

"We are not asking for additional benefits or privileges," said Carlos Escobar Royval, president of the Ciudad Juarez Chamber of Commerce. "Rather, we want (government) to make us more competitive because of the economic and geographic zone we live in and free us from so much administrative burden."

Read the rest at Mexidata.info

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