Maquilas pay more taxes in Mexico

Mexico City— The Mexican Council of Maquiladora and Export Manufacturing Industry, Consejo Nacional de la Industria Maquiladora y Manufacturera de Exportación (Index) demanded from Mexican fiscal authorities changes in this subject to provide foreign investment with certainty and make this activity more profitable when compared to countries such as China, Brazil, Thailand and South Korea. KPMG Consultants Firm prepared a Total Taxes Index, taking as basis Mexico, assigning it 100 points; from such baseline, it turns out that Costa Rica has 94 points, Brazil 42, China 38, Thailand 29 and South Korea 26 points, which means that all these countries have a competitive fiscal advantage over Mexico. According to Luis Aguirre Lang, INDEX Chairman, this situation arises from the fact that those countries provide fiscal certainty in the medium and long terms, while in Mexico fiscal provisions change every year, which “scares away investors” even if Export Maquiladora Regime is attractive.