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Since January 2nd, in more or less 20 cities, several groups of citizens have taken part of in a protest called on by Gerardo Fernández Noroña, a leftist Mexican politician and activist. He prompted people into not paying the extra cents or pesos proportionate to several new taxes that went into effect on January 1st, as part of the federal tax reform approved late last year.
"I am calling on everyone to not pay their taxes as a way to disobey the government and fight a government that sells the country out, a government that is handing over oil [to private companies], a government that is impoverishing the people… I paid 5.50, and here's the receipt for 6.20. I told her [the cashier] very clearly, I am not paying fifty cents, it is half a liter, a peso for each liter of soda…and I told her that I am not steeling, I am paying for the product, I'm just not paying the tax, it is an act of civil disobedience" said the politician in a recent video:
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VIDEO: Noroña calls on people no to pay VAT on food
One of the first to respond to his call and stunt, were a group of Baja residents in Mexicali that entered a local Walmart, bought several products but refused to pay the new 16% VAT (Value Added Tax) rate in border areas, which was previously 11%.
The website Lindero Norte, reports it is mostly an act of "non-violent civil disobedience" in which some people have entered retail stores and bought pastries and sodas, pay for them but only their pre-tax value, telling the cashier that they won't be paying the VAT. Their request was, surprisingly, approved by Walmart, managing to get away with not paying the new 16% VAT rate, or the Special Tax on Production and Services (IEPS in Spanish).
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VIDEO: Civil Disobedience in Mexicali
Other WordPress users then began to criticize their actions, pointing out that the tax was indeed payed for and that what they only got was a discount from Walmart. This is true, since the VAT is payed throughout the production and value chain before reaching the final consumer in retail stores, although protesters explained that the point is precisely that: making companies pay the tax, and not ordinary citizens.
The tax reform was proposed and approved with the promise that it wouldn't affect daily consumers at markets and retail stores. In theory, the VAT increase most of the time doesn't directly raise prices at stores, but the increases on production costs are so great that bakers, shop owners, chefs and small businesses can't deal with the new expenses and must pass their higher prices unto consumers.
Larger stores though, are generally able to absorb the extra cost that comes with these new taxes, which is why some criticism has been targeted specifically at stores like Walmart for raising prices.
Noroña has also defended himself against criticism that his actions will result in a pay deduction for cashiers who let costumers avoid their taxes, by saying "those worries are lies spread by supporters of Enrique Peña Nieto, and in no way will our actions actually affect workers if we decided to unite against an increase in taxes.".
Finally, the politician thanked those who have already participated in the protest and reminded everyone there will be a national meeting on February 1st.
This current anti-tax movement in Mexico comes from the left, not the right, as it is in the U.S., stemming from perceptions that taxes are unfair to the middle and lower classes in Mexico, they aren't tough enough on larger companies and the richest citizens, and that they are misspent on corruption. It isn't so much a movement against the idea of taxing.
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Elizabeth.rosales@sandiegored.com
jose.sanchez@sandiegored.com
