AS/COA Online | New Year, New Taxes in Mexico

Mexico rang in the New Year with a series of tax hikes in hopes of easing a budget deficit sparked by last year's financial crisis. On Monday, tax increases went into effect on income, consumer goods, and phone service, along with an rise in fuel prices. The country’s tax revenues in terms of GDP rank among the lowest in the world. Still, the hikes could lead to inflation and dampen the country’s 2010 growth rate. The tax increases come as President Felipe Calderón kicks off the second half of his term with an ambitious political reform proposal.

Read the full article.