Mexico president considering increasing value added tax
MEXICO — A proposed tax reform by the Mexican President could have a big impact on Mexican businesses along the border.
President Enrique Pena-Nieto is proposing an increase on the Valued Added Tax from 11 percent to 16 percent along the border to match the rest of the countries valued added tax rate.
University of Texas at Brownsville Associate Professor Dr. Pablo Rhi-Perez says this could have a big impact on Mexico businesses like car dealerships, "For buying on the border, a car, it diminishes completely because it is not worth it to buy the car, where you can pay the same value added taxes in Mexico City or Monterrey."
Dr. Rhi-Perez says under the proposed tax reform some businesses would be exempt from the tax increase.