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Article: MEXICAN GOVERNMENT ANNOUNCES INCENTIVES TO RESCUE AILING MAQUILADORA INDUSTRY.
- Article from:
- SourceMex Economic News & Analysis on Mexico
- Article date:
- October 22, 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 government is attempting to rescue the maquiladora industry through simplification of paperwork and elimination of certain taxes levied on assembly plants along the US-Mexico border.
In a proposal drafted jointly by the Secretaria de Economia (SE) and the Secretaria de Hacienda y Credito Publico (SHCP), President Vicente Fox's administration is seeking to phase out the payroll tax (Impuesto Sustantivo de Credito al Salario, ISCAS) and reduce the income tax (Impuesto Sobre la Renta, ISR) for maquiladora operations. The tax reduction is seen as a significant step toward ensuring the survival of the industry, which has been hit hard by the economic ...