# New taxes proposed.



## chicois8 (Aug 8, 2009)

I see the Mexican Gov. (PRI) is looking to start taxing most foods bought in stores and medicines, how will a 16% raise in those items affect your budget?


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## Heyduke (Jun 17, 2012)

It would hurt me but just think what it would do to the locals.


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## citlali (Mar 4, 2013)

I think they are talking about processed food rather than produce and basic items.
If that is correct we will not be affected much as I make pretty much everything from scratch...on the other hand my husband will lose weight if he cuts back on his cherished mayonnaise or will have to make it fresh every time.. Seriously we will not like it but the people who will really hurt are the poor.
Medecine going up i bad news as well.


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## joaquinx (Jul 3, 2010)

citlali said:


> I think they are talking about processed food rather than produce and basic items.


Thinking that the poor buy most of their food at street mercados, there won't be any tax there. If they're buying canned good, frozen food, instant soups, then yes. What we don't know is the percentage of the VAT. It could be 16% or it could be less.

Medications is another story. Perhaps the tax is on items in front of the counter and not the ones behind the counter. Then again, we need to know the percentage. Seeing as the price of medications in Mexico is less than NOB, it shouldn't hurt us. Well, at least, it won't hurt me.


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## tepetapan (Sep 30, 2010)

This has been brought up before, not a new idea. I doubt it will get past the discussion stage and ever make it to congress for a vote. 
Mexico is looking to raise some tax revenue due to the huge informal employment numbers. I have seen a barber work at 15 pesos a cut, 5 minutes a person max, and always have 4 or 5 people in line. That is $15 to $20 usd an hour, 8 hours a day, 5 days a week. Paying no taxes.
Or the one car wash guy, 50 pesos a car minimum, 2 bays, 30 minutes a car and stays busy busy for 6 hours a day, 6 days a week. say $10 to $20 usd per hour. Paying no taxes. 
Some people in the informal market make some serious cash but how do you get them to pay taxes since everything is cash? It is a huge problem for Mexico and as usual the poor guy will be taking a hit somewhere along the line.


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## Longford (May 25, 2012)

Tax evasion is a huge problem in Mexico and the government is obviously looking for an easier more certain way of raising revenues. This is a proposal which has previously been floated as a possibility. Not certain if it was during the last PRI regime, of Ernesto Zedillo, or if it arose under Fox or Calderon of the PAN. If expats have difficulty paying the tax, if levied, then they probably don't belong in Mexico due to lack of sufficient funds.


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## joaquinx (Jul 3, 2010)

tepetapan said:


> This has been brought up before, not a new idea. I doubt it will get past the discussion stage and ever make it to congress for a vote.


It was brought up under the PAN president Fox and the PRI voted it down. Now a PRI president wants it, so I believe that PAN will vote for it. PRD is dead set against it, but they don't have to votes.


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## Anonimo (Apr 8, 2012)

*Topic, anyone?*

What was the topic?

Oh: *New taxes proposed* 

:focus:


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## TundraGreen (Jul 15, 2010)

Anonimo said:


> What was the topic?
> 
> Oh: *New taxes proposed*
> 
> :focus:


Good point. I moved the food posts to "Eating Habits" in La Chaterrería.


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## joaquinx (Jul 3, 2010)

TundraGreen said:


> Good point. I moved the food posts to "Eating Habits" in La Chaterrería.


Good move. I thought that eating habits were very taxing.


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