Daily Tax Report: International

Mexico to Cut VAT, Income Taxes for Southern Region, AMLO Says

Nov. 27, 2020, 1:41 PM

Mexico’s President Andres Manuel Lopez Obrador said Friday he’ll extend the fiscal support he’s given to northern border towns to 22 towns at the southern border.

  • VAT will be cut to 8% from 16% and income tax to be cut to 20% from 30%, and gasoline prices will be adjusted to rates similar to Guatemala, Finance Minister Arturo Herrera said at the same press conference
  • The new tax rules take effect at the beginning of 2021
  • AMLO is also expanding fiscal support to northern border region through 2024
  • Expanded fiscal support includes parts of Quintana Roo, where Chetumal will have...

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