Economics

Mexico Plans to Cut Tax for Companies Holding IPOs to 10%

AMLO, central bank unveil broad measures for financial system
Changes aimed at bolstering stock market, spurring lending

The Latin American Tower, center, stands in the city skyline in this aerial photograph taken from a helicopter in the Condor Group, a fleet of helicopters operated by the Federal District Secretariat of Public Security, in Mexico City.
Photographer: Susana Gonzalez/Bloomberg

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By Nacha Cattan and Eric Martin

January 8, 2019 at 5:24 PM UTC

Updated on

January 8, 2019 at 11:05 PM UTC

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Mexico will cut the tax rate paid by companies on the proceeds of initial public offerings to 10 percent as part of a broad-ranging plan to boost public offerings and spur growth in the financial system.

Finance Minister Carlos Urzua announced the measure at an event led by President Andres Manuel Lopez Obrador and Banco de Mexico Governor Alejandro Diaz de Leon at their first appearance together since AMLO, as the leftist is known, took office Dec. 1. The plan also includes boosting issuance of corporate bonds, making lending between banks easier, and strengthening the pension fund system and personal savings schemes.