| | |  Business News | September 2009 
PAN: New CAP Tax Will Not Pass
 Victor Mayén - Rumbo de México
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September 12, 2009
An important majority of National Action Party (PAN) senators recognize the difficulty of putting into place the "Contribution to Combat Poverty" (CAP) tax, saying it will be blocked in Congress because of the way it was presented.
The federal government failed to explain to taxpayers that the law, if passed, would add tax to every consumer product, including tuition and books, which are currently exempt from the value-added tax (IVA).
PAN leaders, who requested anonymity, said that the CAP provoked strong internal dissent, and a majority of the 51 PAN senators in the 128-member upper house are against passing the bill.
Sources said that "the CAP has a hard road ahead in winning approval from the Institutional Revolutionary Party and the Party of the Democratic Revolution ."
The PRI has said it will use its 237-seat majority in the 500-member Chamber of Deputies to oppose the legislation. If the CAP were to be approved, it would increase black market sales even more, PAN senators said.
However, PAN Coordinator Gustavo Madero said that the CAP won't be a sacrifice to the country's 30 million living in poverty, because they will benefit the most when the taxes are converted into the fight against poverty. "What will be achieved once this package is approved is direct aid to 6 million families in extreme poverty," he said. The return "isn't insignificant, it's exponential, because it's going to be at least 20 times more than what they'll end up paying with this 2 percent."
PRD Vice-Coordinator Silvano Aureoles Conejo said simply that the CAP "isn't going to happen...that tax isn't going to pass because it's a disguised IVA for food and medicine."
The Finance Secretariat, he added, designed an economic package just to face the "government's financial crisis, to liquidate it, to get out of this year's and next year's slumps." |
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