Mexico’s maquiladoras push for changes to new tax plan

By Stephen Downer
Correspondent

Published: November 11, 2013 1:30 pm ET
Updated: November 11, 2013 1:31 pm ET

Related to this story

Topics Public Policy, Mexico

MEXICO CITY — Mexico’s maquiladora industry says it will press for amendments to a far reaching tax law approved by senators in late October two weeks after its successful passage through the lower house of Congress.

The so-called Reforma Hacendaria is scheduled to take effect in January, although it has yet to be signed into law by President Enrique Peña Nieto. In its current form it will remove the generous tax exemptions that have benefited the maquiladora industry since its inception in 1965.

The National Council of the Maquiladora & Export Manufacturing Industry, which represents 20 maquiladora associations across Mexico, said in a Nov. 4 statement that Peña Nieto can soften the law’s impact if he wishes.

“The president of the republic has the power to retain the income tax and value added tax exemptions for the maquiladora export industry,” it said.

It also argued that the fiscal measures affecting the sector’s 5,111 companies and 2 million-plus employees were inadequately debated by legislators over 54 days.

“Having to tell multinational corporations that the programs for attracting foreign investment have been modified and restrictive criteria that do not favor our country as a safe foreign trade destination introduced will have negative repercussions on Mexico’s international image,” it said.

In the maquiladora council's economic report for September, Council General Manager Carlos Palencia wrote that, under the new law, the sector will be required to pay $25 billion in value-added tax for temporarily importing raw materials and machinery.

In 2012, maquiladora program companies imported supplies and machinery valued at $156.3 billion, according to government statistics.


Comments

Mexico’s maquiladoras push for changes to new tax plan

By Stephen Downer
Correspondent

Published: November 11, 2013 1:30 pm ET
Updated: November 11, 2013 1:31 pm ET

Post Your Comments


Back to story


More stories

Plastics executive pleads guilty in federal firearm case

January 23, 2015 12:37 pm ET

Richard Cummings, 43, a former manager at Tri Town Precision Plastics Inc. in Deep River, Conn., has pleaded guilty to violating federal firearms...    More

Image

Mexico's Polymer Solutions looks to grow, expand offerings with name change

January 23, 2015 12:03 pm ET

British biodegradable additives developer Symphony Environmental Technologies plc's Mexico distributor has changed its name from Plásticos...    More

Image

Recycling Partnership coalition kicks off its initial curbside project

January 22, 2015 3:51 pm ET

The Recycling Partnership's inaugural effort to boost curbside recycling around the country kicked off this week in Columbia, S.C.    More

Image

ACC's 'Roadmap' gaining traction

January 22, 2015 1:56 pm ET

Nearly a year into the launch of the latest effort to promote greater use of plastics in automotive applications, a trade group behind the push says...    More

Image

Ineos equipment failure may affect short-term PP supplies

January 21, 2015 4:27 pm ET

A recent equipment failure at a polypropylene resin plant operated by Ineos Group could affect short-term supplies of that material in North America.    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events