FACTBOX: Key facts about Mexico's tax reform

Fri Sep 14, 2007 8:41pm EDT

Related Topics

(Reuters) - Mexico's Congress on Friday approved President Felipe Calderon's plan to overhaul tax laws, giving Mexico its biggest economic reform in a decade.

Here are key facts about the reform:

* Mexico has one of the smallest tax collection rates in Latin America, collecting about one-third of what Brazil's tax authorities take in relative to gross domestic product

* The reform would boost tax revenues by as much as 2.5 percentage points of gross domestic product, up from about 10 percent now.

* The cornerstone of Calderon's reform is a new minimum income tax for companies of 16.5 percent in 2008, rising to 17.5 percent by 2010.

* Mexico will crack down on tax evaders in the cash economy, such as street vendors, with a 2 percent levy on large cash bank deposits.

* State oil monopoly Pemex will keep more of its revenues from crude oil sales to reinvest in exploration and technology.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.