Nov. 1 --Mexico's congress passed a tax reform measure that would make changes to customs practices and raise the value-added tax on export assembly plants in the border regions.
The measure, which would also raise income taxes and create new duties on capital gains and sugary drinks, now awaits President Enrique Pena Nieto's signature.
Pena Nieto had been pushing the new tax bill as a way to reduce the nation's dependence on oil revenue and promote growth.
One provision in the bill would raise the VAT to 16 percent in border regions from the current rate of 11 percent. The tax increase would go into effect Jan. 1.
Congress remains “concerned about the negative impact this can have on businesses,” but a modification inserted by the lower house of Congress “as a last minute effort to support the maquila industry” was kept in the Senate version the tax bill, Congressman Mario Sanchez told Bloomberg BNA.
Sanchez, who is the chairman of the Mexican Congressional Economy Commission, said “assembly plant manufacturing companies that are certified as exporting the final product will be able to get an exemption on the payment of tax on temporary imports.”
Companies that are not yet certified have one year to get certified before the elimination of the tax exemption will take effect, Sanchez said.
The VAT increase in the border regions will harmonize the VAT for assembly plants--known as maquiladoras--with the 16 percent paid by businesses in the rest of the country.
To contact the reporter responsible for this story: Maja Wallengren in Mexico City at firstname.lastname@example.org
To contact the editor responsible for this story: Jerome Ashton at email@example.com
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)