[SNE] 2019-2024 Northern Border Program (11th part)

VAT Decreased

Another issue that in AMLO's letter to Trump, and the exhibition of ideas by Ebrard, has pointed to the border, is the reduction of the VAT to an "average" (sic) of 8% and that is a pillar of the Program for the Northern border for the sexenion2019-2024. Actually, we will try to reduce the tax to the same amount as in the US sister city in the sales tax and which has a nature different from that of the VAT.

Given the above, it is relevant to know the impact, dismember the issue in explaining what is VAT, what is the sales tax, what are the risks of application and where appropriate the benefits.

Without paying attention to these topics, it will be very difficult to understand the consequences of the program intended in particular for this tax. And of course, this will cause relevant distortions, which could be more costly than the imminent benefits to be obtained.

Therefore, this VAT issue is developed in different sections explaining each part and arriving at a basic conclusion.

(continues part 12)