The federal government published in the Official Gazette of the Federation (DOF) the decree that eliminates tariffs on 21 products that are part of the basic basket and six strategic inputs.
The purpose is to curb inflation in the basic basket and to have a “fair price” for citizens, since in the first half of April Mexico had 7.72% inflation at an annual rate, the highest figure since January 2001.
The products covered are: corn oil, rice, tuna, pork, chicken meat, beef, onion, jalapeno pepper, beans, corn flour, wheat flour, egg, toilet soap, tomato, milk, lemon, white corn, apple, orange, box bread, potato, soup paste, sardine, sorghum, wheat and carrot.
In addition, other tariff items such as live animals of the bovine, porcine, ovine or caprine species, roosters and hens are exempt from payment.
This measure is part of the Package Against Inflation and Famine (Pacic), which the Ministry of Finance (SHCP) announced on May 4 and will be in force for a year, with the possibility of extending it for an equal period.
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This anti-inflation package includes other measures such as a production strategy to increase production in the food supply and a distribution strategy.
Production strategy
It will be focused on increasing the supply of food and the measures are as follows:
Stabilization of the price of gasoline and diesel, reference prices of LP gas and electricity.
Increased grain production.
Fertilizer delivery: the free fertilizer delivery plan will be expanded from four to nine states, with which the government intends to increase basic grain production by 2 million tons, in addition to 800 thousand tons more with the Sembrando Vida program.
Elimination of the compensatory quota for ammonium sulphate for one year.
Distribution strategy
In this case, the measures are as follows:
Strengthening of the road safety strategy (the authorities affirm that more than 12,000 elements and 2,300 vehicles will guarantee safety on those roads).
No increase in road tolls from Capufe and Fonadin in 2022.
Exemption of consignment note (basics and inputs) until October 1, 2022 and, if necessary, this will be extended for another period.
No increase in rail fares or compensation for interconnection. This measure is for six months and will apply to the transport of food, fertilizers and hydrocarbons.
Reduction of costs and customs clearance time.
Agile dispatch of cargo in seaports.
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