“The VAT standardization is a declaration of war against the border”: President of CCE Tijuana

CCE calls out for a united front of businessmen and citizens against the 16% VAT

“The VAT standardization is a declaration of war against the border”: President of CCE TijuanaImages by José Sánchez
Images by José Sánchez

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Yesterday, the Entrepreneurial Business Counsel (CCE) of Tijuana made a call to society to act against the standardization of the VAT as well other aspects of the Tax Reform proposed by the Federal government, this happened at a meeting held in the installations of CANACO (National Chamber of Commerce) in Tijuana.

Gathering over 50 representatives of the business organizations, they also published a letter which is addressed to the President of Mexico, Enrique Peña Nieto, the secretary of Treasury, Luis Videgaray and the leaders of the chambers of congress and senate.

The presentation started with words by Karim Chalita IV, President of CANACO Tijuana and Juan Manuel Hernandez Niebla, President of CCE, the presentation of the new social front against the Tax reform elevated the tone of the public discussion about the subject itself.

Both the president of the CCE as well as the director of CANACO emphasized the need to have an adequate fiscal regiment for each region, but they also used strong words like “economic debacle” and “a declaration of war against the border”, turning this into an opposition against the tax reform that is anything but timid.

Hernandez Niebla commented that “it is not an issue that is solely around the business sector, it is a subject that will affect all of us, it will hit society hard in our wallets” and they are concerned with the lack of support the federal government has given the border region in general.

In the letter addressed to the President of Mexico, they also warn about the dangers other aspects of the tax reform will bring, and as well highlighting all the policies imposed by the federal government on the border, such as the restriction of dollars, the elimination of used car imports, the lack of investments toward infrastructure on behalf of the federation in the state and other measures taken which have impacted the region's economic development.

Hernandez Niebla affirms that if the Tax reform is approved, there will be a decline in all sectors of economy “we are easily talking about a 5 to 6 point drop in the Gross Domestic Product of the state”. Which is why he comments that they have gathered with entrepreneurial groups from 8 other states in the border, including Southern Baja California, which also handles the 11% VAT, to coordinate efforts in the lobbying process.

“We are tired of the federation ignoring us” and have them eliminate tools we need, “it is time for the new governor to raise his standard and call to a new tax federalism”, he also did not hesitate to make a call for a pact to be negotiated with the federation, allowing all states to be renovated each year to obtain greater benefits for them, considering that Baja California sends 5k million pesos each year to the federation, but in return, it only receives 80 million pesos as federal investments.

Hernandez Niebla also reminded that Senate still has to vote on the tax reform, regardless if the federal congressmen approve it.

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