Tax Reform and Mexico's Value Added Tax Reuters
go to original August 8, 2013

Mexico has one of the smallest tax revenues in Latin America. But this coming September President Pena Nieto will present Congress with a plan to substantially improve the country’s tax revenues, including, according to some people familiar with his plan, applying Mexico’s value added tax (VAT) to some foods and medicines.

The plan is aimed at improving México’s tax revenues by about 4% of its gross domestic product (GDP).  That would result in nearly an additional $50 billion per year for Mexico.

... Food and medicine are now subject to a zero rate of VAT. However, sources say Nieto’s plan calls for charging the tax on processed foodstuffs in particular. Staples like milk, eggs, beans and tortillas would be excluded from the tax, the party sources and two other lawmakers said.

Read the rest at The Mazatlan Messenger

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