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Mexico's private sector irked by "junk food" levy in tax overhaul bill

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(Globalpost/GlobalPost)

Mexico City, Oct 18 (EFE).- Mexico's private sector railed against the inclusion in a federal tax overhaul bill of a last-minute 5 percent "junk food" levy, which was approved by the lower house finance committee.

"We're urging legislators, in this process of adding amendments to the proposals, to avoid coming up with last-minute taxes," the president of the Business Coordinating Council, Gerardo Gutierrez Candiani, said.

"The Mexican private sector is profoundly upset because we think (much of the tax overhaul) is not going in the right direction," he added.

Business leaders have called for a tax overhaul that spurs economic growth and does not merely seek to raise revenue, Gutierrez Candiani said.

He called on lawmakers to act responsibly and with vision of the Mexico they want to build in analyzing and adding amendments to the tax overhaul legislation.

"Last-minute taxes ... that hurt the manufacturing sector, workers and Mexican society are unacceptable, and the private sector roundly rejects them," Gutierrez Candiani said.

For his part, the president of the National Confederation of Chambers of Commerce, Services and Tourism, Jorge Davila, said the proposed levy would complicate the tax-collection process.

"I'd like to know who's going to determine what's junk food and what isn't junk food," he said.

http://www.globalpost.com/dispatch/news/agencia-efe/131018/mexicos-private-sector-irked-junk-food-levy-tax-overhaul-bill