(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.
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