translated from Spanish: Lower taxes on candidates’ favorite proposals during these campaigns

Photography/Networks
Mexico.- It seems that candidates who are playing their space in the municipal gubernaturas, meps and presidencies, have resorted to the old but safe proposal, “lower taxes”. Economics highlight promises related to tax collection, others involve major reforms at the federal, state and municipal levels, but few turn out to be innovative.
The elections will be held on June 6, and as that time comes, Mexicans will continue to hear proposals such as reducing Value Added Tax (VAT) to 10% of the current 16%, until they nationalize retirement fund savings (Afores) or for states to exit the tax pact.
“So that families do not suffer the economic crisis and Mexico grows, when we take the majority in Congress from Morena, we are going to lower VAT from 16% to 10%, said the parliamentary group of the Institutional Revolutionary Party (PRI), on April 12, 2021,” in a statement.
You may be interested: Morena candidate calls AMLO corrupt, but attracts attention from multiple observations (video)
After the economic scourg of the pandemic, “independent of the one who proposes it” the proposal has two edges that must be very well analyzed: the first is that it can help recover consumption, but it may involve a reduction in the current collection of tax revenues and that are necessary for the development of projects and meet public sector needs, explained the vice president of the Mexican Institute of Public Accountants (IMCP), Héctor Amaya.
Currently, the Value Added Tax rate in Mexico is 16%, and in the border area it is 8%, the latter was applied since 2018 by the current government, but historically the border rate has been differentiated. When the 8% rate was proposed, the Center for Economic and Budgetary Research (CIEP) warned that this would have negative impacts on tax revenues.
CIEP explained that the collection of any tax depends not only on the fees and conditions in the law, but on economic growth. In a year of economic stagnation (such as the one now lived), business profits and consumption slow down, and therefore tax collection.
In the first quarter of 2021, VAT collection fell 3.2%. CIEP estimates that with the reduced border rate, between 51,000 and 55,000 mdp were no longer collected,

Original source in Spanish

Related Posts

Add Comment