| | |  Business News 
Mexico's Treasury Secretariat: Gas-Hike Reversal a 'Bad Idea'
 Yvonne Reyes Campos - The News
go to original
January 16, 2010
The Treasury Secretariat told Congress that freezing or decreasing the prices of gasoline and diesel will only delay the cost, which would damage federal, state and municipal public finances.
Juan Manuel Pérez Porrúa, head of the Income Policy Office of the Treasury, told the deputies that this year and in 2011 the prices of diesel and gasoline, according to the New York Mercantile Exchange (NYMEX), will increase, which is why decreasing the prices would give the wrong idea to consumers.
Regarding the Congress's request to freeze the increase in fuel prices, Pérez said that new prices applied by the federal government would help to improve finances and increase the productiveness of public businesses.
When the Special Tax on Production and Services (IEPS) of diesel is up, the increase of diesel in Mexico does not have an effect on consumers, because the IEPS applied by PEMEX on diesel is creditable against the Income Tax (ISR). When the IEPS is down, Mexican consumers still pay a lower price than that of consumers in the United States.
Pérez said that in regards to the transportation sector, taxpayers could credit the IEPS and 50 percent of the road tolls they pay, against the ISR.
|
|
| |
Vallarta Weddings
Tell a Friend
Site Map
Print this Page
Email Us