MEXICO DAILY NEWS: The incoming government’s plan to cut tax rates in the northern border region has been put on ice by federal lawmakers.
At a meeting in Mexico City yesterday, the chairs of the budget and finance committees in both houses of Congress warned that conditions are not right to reduce the value-added tax (IVA) and income tax (ISR) rates near the Mexico-United States border.
President-elect López Obrador said during the election campaign that his government would establish a free zone extending 30 kilometers south of the border in which the IVA would be cut by half from 16 percent to 8 percent and the maximum ISR rate will be reduced from 30 percent to 20 percent.
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