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Article: SUPREME COURT RULES AGAINST SPECIAL TAX; DECISION TO AFFECT GOVERNMENT REVENUES.
- Article from:
- SourceMex Economic News & Analysis on Mexico
- Article date:
- May 28, 2003
CopyrightCOPYRIGHT 2003 Latin American Data Base/Latin American Institute. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The Mexican Treasury expects to see a substantial decline in revenues this year because of a decision by the country's highest court (Suprema Corte de Justicia de la Nacion, SCJN), which ruled that the government's special tax on salaries (Impuesto Sustitutivo del Credito al Salario, ISCAS) was unconstitutional.
The ISCAS, which went into effect in 2002, was part of the limited tax reforms approved by Congress in 2001 (see SourceMex, 2002-01-09).
The SCJN ruled that the ISCAS violates Article 31 of the Mexican Constitution because it is not applied equitably. The court based its ruling on more than 640 complaints filed during 2002. Among those filing ...