[SNE] 2019-2024 Northern Border Program (16th part)

VAT Decreased

Finally, another relevant issue to consider and relatively viable to be controlled is the customs. The border will be converted, thanks to the diminished VAT and the Free Zone, in an area other than Mexico, but not foreign. Therefore, having commercial relations with the interior of the country will generate the need for customs bureaucracy and tax payment to the same VAT, import taxes, etc.

This has been common in history, because having the border decree, authorization to import cars and placing border plates, and having until 2013 a VAT below the national (11% at that time), already implied that special location for the border in the legislative system, and for domestic trade, an impasse that has caused the need to carry out procedures and tax payments to achieve this relationship.

The issue here, is not to allow that costly overregulation, not only does not grow, but even become more efficient, so that it is not only an option for large companies to have commercial relations with the interior of the country, but even expand the possibilities for smaller scale companies. Otherwise, the border cities will be left to their own devices in their free zone and with low taxes, but without the opportunity to carry out extensive business in their own country.

In addition to the above, the more complex the regulation to comply, the more viable it will be to create illegal alternatives to achieve business, which of course ends up discouraging the formal economy in exchange for the informal and fraudulent. The fact of having a different VAT in each city of the border, gives space so that a scenario of fiscal fraud, is wider. But the temptation to overregulate to try to avoid these possible frauds, will stop the economy in the perspective of relations with the interior of the country.

-END TO TOPIC VAT DECREASED. WE WILL CONTINUE WITH INCOME TAX-