BY VÍCTOR MAYÉN
The News
MEXICO CITY – Mexico’s Senators approved a modified version of the country’s 2014 federal budget on Thursday.
The estimated tax income for 2014 will be 3 billion pesos lighter than the government hoped for due to 11 modifications made to a tax reform bill by senators yesterday. Mexico will still raise a total of 4.5 trillion pesos ($3.5 billion) in taxes next year, however.
Included in the budget — which now needs to be reapproved by the Chamber of Deputies — is a tax on fatty foods and sodas that the government hopes will bring in some 12.5 billion pesos in revenue. The fatty foods tax, which politicians say will help tackle the country’s growing problem with obesity and diabetes, was approved overwhelmingly in the senate with 99 votes for and three abstentions.
The budget also includes a higher rate of “profit tax,” meaning workers will pay tax on social security contributions and other previously tax-free payments.
Senators also approved the selling of 650 billion pesos of debt.
National Action Party (PAN) Senator Ernesto Cordero Arroyo, whose party this week walked out of the Senate in objection to negotiations on tax reform, said the budget was a disgrace. Cordero said that the budget would stunt Mexico’s economic growth.
Lawmakers finally approved the divisive tax reform bill on Thursday morning. Stripped of a number of proposed new taxes on education and the rental and purchase of property, the bill, if signed into law, will also tax Mexico’s biggest earners at a higher rate.
No comments:
Post a Comment