Summary: Mexico's lower house has approved a taxation on junk food, sugary drinks and pet treats. This taxation will boost government income in Mexico, whose government happens to be one of the lowest tax collectors in the region. However, these companies being taxed are criticizing the taxes, saying they will overall be bad for the economy. Excerpt from the article: Taxes in Mexico are equivalent to 13.7 percent of the gross domestic product, compared to an average 18.4 percent in the rest of Latin America, according to the government.
Analysis: I agree with the taxes being imposed on the businesses. They will overall help increase the government income in Mexico and boost the economy. I also believe the taxes will encourage buyers to buy less junk food and more healthy food.
Link to article: http://news.yahoo.com/mexico-lawmakers-back-tax-junk-food-pet-treats-191040187.html
I agree with the sugar and junk food stuff, but pet treats?!
ReplyDeleteI understand why the Mexican government is doing this and that they need money, but if I lived in Mexico, so many taxes would drive me crazy.
ReplyDeleteI don't know that much about the Mexican economy, but this tax sounds like a good thing for the government, and economy, which is eventually going to help the citizens. It's kind of funny that they imposed taxes on pet treats, but Hey, maybe a lot of people in Mexico buy their pets treats.
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