After 27 years, Chetumal became a free zone again —That is, free of import taxes with countries that do not have treaties with Mexico— and for the rest of the southern border of our country there were news regarding the tax system or the minimum wage increaseAll this on the morning of November 27, where AMLO approved four decrees to expand fiscal support on the northern and southern borders.
According to the AMLO government plan, fiscal support for the northern and southern borders will extend to 2024, with the following benefits: the reduction of VAT (Value Added Tax) by half, the reduction of the ISR (Income Tax) to 20%, the equalization of the price of fuel and the increase in the minimum wage – double – of workers.
. @ ArturoHerrera_G, owner of @Hacienda_Mexico, explained that the fiscal stimuli will materialize in four decrees. One of them is the decree of fiscal incentives on the southern border. pic.twitter.com/kN1epYNZrd
– El Financiero TV (@ElFinancieroTv) November 27, 2020
With respect to the southern border, the beneficiary states will be: Tabasco, Chiapas, Campeche and Quintana Roo.
However, in Quintana Roo, Chetumal will return to be a free zone, after 1993 will end that status, right at the start of the FTA (Free Trade Agreement).
Chetumal becomes a free zone again
“Chetumal will once again be a free zone, free of import taxes in countries where we do not have treaties commercial. No import tax will be charged, so, goods will be able to arrive at a very low price to Chetumal, as it was before, ”said AMLO.
Then Arturo Herrera, Secretary of Finance and Public Credit, explained that this order will apply as of January 1, 2021 —with the exemption (exoneration) of the general tax on imports and the exemption from the customs processing fee.
According to the president, the plan was for these decrees —The fiscal supports to the northern and southern borders — would last for two years. However, in the end the authorities decided to go until 2024.
In summary, the decrees approved are:
Decree on fiscal incentives on the southern border. Decree to stimulate IEPS gasoline on the southern border Decree that establishes tariff benefits in the Chetumal free zone. And the extension of the validity of the Decree of Stimuli in the northern border.