What the Mexican Tax Reform Proposal Contains Aristegui Noticias
go to original September 9, 2013

The tax reform proposed by President Enrique Pena Nieto includes the application and removal of various taxes with which the government is seeking an additional 240 billion pesos [$18,257,000,000USD] in 2014.

Income Tax (ISR)

• Will charge 32% tax on those individuals with incomes exceeding 500 thousand pesos [$38,000USD] annually and maintain the corporate income tax.
• Tax gains on stocks and dividends, up to 10%.
• Tax of 10% on income from sale of shares.
• Tax Pemex at 10% of the value added in production.

Value Added Tax (VAT)

• There will be no VAT tax on food and medicine [a point of great contention with the Mexican left].
• Remove the exemption for the purchase, rent and mortgage payments on homes.
• Remove the exemption for [private] education services.
• Taxpayers in the border area will pay same rate as rest of country, 16%.
• Tax temporary manufacturing imports [a good part of Mexican industry consists of assembling imported parts in maquiladoras for subsequent export.].
• Chewing gum, processed foods for dogs, cats and small animals as pets at home, which are currently exempt, will be taxed.
• Sale of gold jewelery, gold, artistic or ornamental pieces will be taxed.
• Tax interest received or paid by Cooperative Savings and Loans, Popular Financial Companies, community financial societies and rural financial membership organizations.

Special Tax on Production and Serivices (IEPS)

• Keeps the tax rate of 26.5 percent on the sale and importation of beer with an alcohol content of up to 14 º.
• Tax alcoholic beverages and beer with an alcohol content greater than 20 ° GL, at about 53 percent.
• Establish a tax on beverages [soft drinks, of which Mexicans are the world's largest consumers] flavored with added sugars, concentrates, powders, syrups, essences or flavor extracts.
• Tax the sale and import of fossil fuels according to their carbon content.

See the original at Mexico Voices

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