"Compared to countries with similar models to the Mexican maquiladora industry- with who they compete to attract investment- such as China, Brazil, South Korea, Thailand, Costa Rica, Honduras, the corporate tax rate that is being paid in Mexico is the highest," underlined Luis Aguirre, adding that with the Property Reform the maquiladora industry could go to other countries when considering that the financing flow required is very important, directly impacting the operation and manufacture cost in Mexico.
He expressed that an impact between six and twelve billion dollars would be generated to finance this proposal.
Additionally, he made reference to the administrative cost that would imply keeping these controls and processes, "the maquiladora industry would not be able to navigate with these strong tax blows," he affirmed.
Supposedly, the tax would be reimbursed sooner or later, but the companies that would be receiving the reimbursements from their taxes know that this is a costly and difficult process.
Small and medium maquiladoras, the most vulnerable to the Tax Reform
The Tax Reform which just a couple of months ago, was declared by the British magazine The Banker, the best finance secretary internationally, is affecting investors' plans who are reevaluating their projects before the tax increase which will elevate operation cost in Mexico.
Jose Alberto Gonzalez Karam, president of the Binational Commission of Border Affairs of the National College of Economists, sustains that the… Continue reading article here
Find more news at BusinessConexion
Follow Business Conexion on Facebook, Google+ and Linkedin
editorial@businessconexion.com
