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Monday, Oct. 7, 2013

PRI leadership reported to oppose move to boost value-added tax along border

Baja California PRI leader Nancy Sánchez says PRI President César Camacho is opposed to the increase; it remains to be seen what effect that might have

Update, Oct. 8: Finance minister meets with Baja California governor-elect, seeks study of tax increase's impact on border; Sánchez appears to back away from her earlier comments about Camacho

        The national leadership of the Institutional Revolutionary Party is abandoning its move to boost the value-added tax along the border, quoted Baja California PRI leader Nancy Sánchez as saying. President Enrique Peña of the PRI had proposed boosting the tax from 11% to 16% to match the tax in the rest of the country, but it met with widespread opposition in border states.

         Peña Nieto currently is in Bali, Indonesia, at the APEC Summit. Baja California business leaders and others met with his finance minister, Luis Videgaray, over the weekend to express their displeasure with the proposed increase, which was part of an overall fiscal reform that Mexico badly needs.

         Sánchez and federal Deputy Carmen López Segura both told the media that national PRI President César Camacho was now opposed to the value-added tax for the border. It remains to be seen what effect that would have; on July 7, Camacho proclaimed that the PRI's Fernando Castro Trenti had won the Baja California gubernatorial race, but that proved not to be the case.     

        On Sept. 28, Baja California Deputy Jaime Bonilla had said there was a very good chance of turning back the proposal.

         Sánchez also indicated that a proposal to tax good coming into the country to be assembled at maquiladoras, and then to refund that tax once it was proven the goods had been exported, also is being abandoned.   

Story, El Mexicano (PDF).

Update, Oct. 8: Videgaray meets with Baja California Gov.-elect Francisco Vega, seeks study of tax increase's impact. Story, El Mexicano(PDF).
                        Sánchez appears to back away from her remarks about what Camacho said. Political page, El Mexicano (PDF).