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News Article

New Fiscal Stimulus Plan Includes Southern, US Borders

By Ricardo Guzman | Fri, 11/27/2020 - 11:18

Southern border fiscal stimulus program. The Mexican government announced a fiscal stimulus program for the southern border similar to that on the US border. Minister of Finance (SHCP) Arturo Herrera said that the program includes fiscal support for 22 municipalities in Chiapas, Tabasco and Campeche, with VAT reduction from 16 to 8 percent, Income Tax (ISR) reduction from 30 to 20 percent and gasoline incentives in the Special Tax on Products and Services (IEPS) to match fuel prices at the border. “Just like happened in the north, the prices on the Mexican side are different from Guatemala’s, and we have reports of bulk contraband from Guatemala to Mexico,” Herrera noted. All fiscal incentives will enter into force on Jan. 1, 2021.

Fiscal support at US border until 2024. President López Obrador announced that the fiscal support included in the of the North Border Free Zone Program will be extended until his term ends. “It is extended so that it remains in effect until the end of our government,” he said. Regarding the southern border stimulus program, the president highlighted the case of Quintana Roo’s capital city. “Chetumal will once again be a free zone, free of imports from countries with whom we do not have trade agreements. No import tax will be levied, thus some goods will be available at very low prices,” he said after Chetumal lost its free zone status in 1992.

Buenrostro points at fraud in SAT. Accounting firms are involved in the saturation of the system used by taxpayers to agree on appointments, Tax Administration Service (SAT) head Raquel Buenrostro said. “They are using bots, they hoard all appointments and have been selling them, obviously in collusion with some officials,” she said. Buenrostro explained that the system has now been modified and new security measures have been introduced “to prevent these bots from using the system again.” She explained that the fraudulent scheme reportedly took place mostly in Jalisco and Nuevo Leon. The official noted that work is being done to block calls and asked people to use mail and other electronic means to make appointments.

Praises Senate for ending presidential immunity. President López Obrador thanked the Senate for approving the elimination of presidential immunity. “I want to thank the legislators and senators very much because the initiative that we sent to remove presidential immunity was approved,” he said. The president highlighted the relevance of the decision. “This is a truly historic fact. The acting president could only be tried for treason. Now with this initiative, it will be possible to try him for any crime just like any other citizen,” he said about one of his most notorious campaign promises.

Free to decide. After Representative Gerardo Fernández Noroña refused to wear a face mask during an Electoral Institute (INE) session yesterday, forcing the rest of the participants to leave the session hall, President López Obrador said that the people in Mexico today are free to decide. “The most important thing is freedom. So, people have to decide freely and trust Mexicans. The Mexican people always act with wisdom,” he stated. The president said that the dispute between the vocal and combative Fernández Noroña and other representatives shows that Mexico no longer submits to authoritarianism imposed by conservatives. “This clashes with the conservative mentality who are more used to impositions. We are more supporters of freedom and democracy,” he said. On several occasions the president has questioned the effectiveness of using face masks in facing the COVID-19 pandemic.

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Click HERE for full transcript in Spanish

 

Ricardo Guzman Ricardo Guzman Editor