Mexico Sales Tax Update from 11 to 16 percent
Going to hurt the Poor, Unemployed and Retired very hard. So much for the new leadership plans.The heavily opposed increase in sales tax, (IVA), from 11 to 16 percent in the border states of Baja and Baja Sur, has caused an uproar and lots of pressure on our federal senators and lawmakers. IVA in Mexico’s mainland is 16 percent, but we pay only 11 percent, supposedly to promote cross border trade.
Opposition is so heavy that a new proposal has popped up in the social media, the secession of the Baja Peninsula from the country of Mexico!
As farfetched as it seems, it is catching on. Well, it’s catching on with the social media crowd. Surprisingly, nobody in that ether world has mentioned that our state pays way more in federal taxes than we get back, because we are relatively rich.
Another reason to secede, if they knew that fact.
On the bright side, it appears that Congress has already decided not to impose IVA to private school fees, mortgage and home leases. Pet food, gum, sodas, cigarettes and alcohol will most probably be taxed higher. What? They’re going to raise taxes to Corona beer? Noooo!!! And what about the economic impact on the Chiclet kids? How are their parents supposed to support their bad habits now??
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