Mexico Announces Reduction of Border Taxes and Free Zone

The president of Mexico, Andrés Manuel López Obrador, signed today separate fiscal decrees for the northern and southern borders, with the United States and Guatemala, respectively, and for the creation of a free zone in Chetumal.

In his morning press conference at the National Palace, the president explained that the fiscal support, consisting basically of a substantial reduction in taxes and gasoline prices, is applied along three thousand 800 kilometers on the border with the United States, already started at the beginning of his government, but now it will be expanded.

He explained that the income tax is reduced by 20 percent, the VAT in half, that is to 8.0 percent, and the prices of gasoline and fuels are homologated with those of the neighboring country. Finally, tax is increased to double the minimum wage for border workers.

He clarified that the validity of that decree is extended because it was for two years and now it extends until the end of 2024, that is, until his term ends in December of that year.

The other very important announcement, he said, is that very similar treatment is given on the southern border of Chiapas, Tabasco, Campeche and Quintana Roo.

There is something very important that Quintana Roo is going to like and that is that Chetumal is once again a free zone, that is, a tax-free zone for imports with countries with which Mexico has not signed trade agreements.

In other words, he indicated, no taxes will be charged and goods will arrive at a low price, as it was before changes were carried out at the beginning of the neoliberal period, more than 32 years ago. (

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