POSTED: Wednesday, January 8, 2014 - 6:10pm
UPDATED: Thursday, January 9, 2014 - 9:26am
MCALLEN, TX (KVEO NEWSCENTER 23) — Liquor runs south of the border could now be a thing of the past due to higher taxes in Mexico.
The federal sales tax in Mexican border states was 11 percent. But on January 1, it was raised to 16 percent to match the rest of the country.
Liquor stores in the Valley anticipate a boost in shoppers buying alcohol on this side of the border. They also expect more Mexican nationals to shop in the U.S. to avoid the higher taxes.
Holiday Wine & Liquor is locally owned and operated and has been in the Valley for 31 years. They are one of the many local stores hoping to benefit from the Mexican tax increase.
"For a long time we thought 'Oh gosh, Mexico's really got the leg up' because product seemed more affordable, taxes were less," explained Catia Hernandez Holm with Holiday Wine & Liquor. "You could also go get a botana and get your bottle of liquor in the same afternoon. So I think now customers will realize 'Gosh, we have all that right in our backyard!' And hopefully not only us as a local business but other local businesses will see a boon from that."
The five percent tax increase in Mexico's border states is expected to drive retail sales for other local businesses in the Valley region.