Feb. 27 (Bloomberg) -- Mexico’s president won’t propose new taxes or higher levies during his five years in office, extending an earlier promise to keep duties unchanged until 2016, Finance Minister Luis Videgaray said.
In addition, the government, which came to power in 2012, won’t make any changes to tax benefits or extensions, Videgaray said at an event in Mexico City today.
New duties took effect Jan. 1 on everything from chewing gum to soda pop as the government attempts to wean itself off of oil revenue, which currently funds about a third of its budget. Taxes will only be changed for the energy sector to help boost crude and electricity production as laid out in an oil overhaul passed last year, or in the case of a “substantial macro-economic event,” the Finance Ministry said in a statement today.
Mexico raised sales taxes in areas bordering the U.S. to 16 percent from 11 percent and created a new 8 percent levy on junk food and a 1-peso-per-liter tax on sugary drinks.
The agreement with business leaders not to raise taxes seeks to “offer certainty and foment investment and economic growth in the country,” the Finance Ministry said.
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