Simple tax system would encourage investment: IMCP

» Simple tax system would encourage investment: IMCP

Given the downward adjustment in growth range for 2015 between 2 and 3 % by the Bank of Mexico (Banxico), union of public accounting insisted that, today more than ever, Mexican economy should have a simpler tax system. Ernesto O'Farrill , chairman of the Committee on Economic Analysis of the Mexican Institute of Public Accountants (IMCP), acknowledged that macroeconomic indicators in first five months of year show that "Mexico continues to grow below its potential, so that they must implement measures".

In a press conference, he insisted that improve fiscal regime of the country, particularly tax reform, would encourage higher levels of investment, and so that companies would provide more employment and thus would achieve higher growth rates to those already registered. Among the minor changes that IMCP brings to table, and become friendlier to investment and employment it would give back to companies accelerated depreciation and allow businesses to deduct 100 % employee benefits. Other changes are -rather than reduce- raise limit personal allowances to taxpayers, so that this society will become a watchdog, and generalize the Value Added Tax (VAT) on food and medicine.



Learn more about us.