Thursday 24 June 2021

Mexico Raises Taxes on Junk Food

Junk food, sugary drinks and pet treats to cost more in Mexico after lawmakers of the lower house approved a disputed tax reform plan to boost government revenue. Mexico is Latin America’s second economy.

54588_620The house voted 317-164 yesterday to approve a modified version of President Peña Nieto’s bill that increased the top income tax rate to 35% from 30% and created a 5% tax on high-fat foods. The bill, which stripped out the initial plan to tax private education tuition, mortgage interest and home rentals, now heads to the Senate.

The junk food tax sparked stock declines yesterday for food companies such as Grupo Bimbo SAB, the world’s largest baker, and Gruma SAB, the world’s biggest tortilla maker.

- Advertisement -

Lawmakers from the National Action Party, the biggest opposition group in Congress, opposed the bill after Pena Nieto’s Institutional Revolutionary Party, or PRI, refused to drop its plan to increase the sales tax in states that border the U.S., including traditional strongholds for the party known as PAN.

A higher tax rate for top earners and duties on high-fat foods were proposals pushed by the Democratic Revolution Party, or PRD, the second-largest opposition group.

Under the bill approved yesterday the maximum income tax rate will increase to 35 percent for people making more than 3 million pesos ($235,000) from 30 percent. Pena Nieto had proposed increasing the top tax rate to 32 percent for more than 500,000 pesos in income.

Mexico’s economy will grow 1.7 percent this year after expanding 3.9 percent in 2012, according to government estimates.

- Advertisement -

- Advertisement -

FACT CHECK:
We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

Ricohttp://www.theqmedia.com
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

[BLOG] Costa Rican Electric Company – General Maintenance Procedures

During my fifteen plus years of living in Costa Rica, I...

Heliport, Money and Weapons in Costa Rica

Following reports by residents of Las Asturias de Pococí about flyovers...

MOST READ

Internet speed decreases during peaks in service

QCOSTARICA - Ever wonder why your surfing on the Internet slows down, to even a crawl, mainly in the evenings? This is due to...

Treasury threatens to close doors to Sinpe Móvil to avoid tax evasion

QCOSTARICA - What had been a good tool as a payment mechanism for sellers and businesses, the Ministry of Finance (Treasury) has in its...

Nathalie Álvarez Mesén’s feature debut, Clara Sola, ready for the Cannes Directors’ Fortnight

Q ENTERTAINMENT (CINEUROPA) Nathalie Álvarez Mesén’s debut feature, Clara Sola, is ready to take part in this year’s Directors’ Fortnight at the Cannes Film...

Construction companies that paid alleged bribes would be disqualified for ten years

QCOSTARICA - If it is proven in a final judgment that they did pay bribes to Conavi officials, several companies could be disqualified from...

Will that be Cash or Sinpe Móvil?

QCOSTARICA - Sinpe Móvil is easy to use. From your phone, you can send money to friends, family and pay for things. Or receive...

The United States will distribute 55 million vaccines against Covid-19 in Latin America, Africa and Asia

QCOSTARICA - The United States presented on Monday a plan to share 55 million doses of coronavirus vaccines worldwide, with approximately 75% of the...

Full court decides not to investigate or dismiss Emilia Navas

QCOSTARICA - Emilia Navas will not be removed from her position as attorney general, after calls for her to step down due to her...

Today’s Vehicle Restriction June 22: plates ending in 3 & 4 CANNOT circulate

Today, Tuesday, June 22, plates ending in 3 & 4 CANNOT circulate. The measure is countrywide and applied between 5:00 am and 9:00 pm, save...

Germany opens borders to Ticos from this Friday!

QCOSTARICA - Good news for Ticos with traveling fever! From Friday, June 25, Germany will allow entry of travelers from Costa Rica as long...

WANT TO STAY UP TO DATE WITH THE LATEST!

Get our daily newsletter with the latest posts directly in your mailbox. Click on the subscribe and fill out the form. It's that simple!

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.