SUPREME COURT RULES AGAINST SPECIAL TAX; DECISION TO AFFECT GOVERNMENT REVENUES.

SourceMex Economic News & Analysis on Mexico | May 28, 2003 | Copyright

The Mexican Treasury expects to see a substantial decline in revenues this year because of a decision by the country's highest court (Suprema Corte de Justicia de la Nacion, SCJN), which ruled that the government's special tax on salaries (Impuesto Sustitutivo del Credito al Salario, ISCAS) was unconstitutional.

The ISCAS, which went into effect in 2002, was part of the limited tax reforms approved by Congress in 2001 (see SourceMex, 2002-01-09).

The SCJN ruled that the ISCAS violates Article 31 of the Mexican Constitution because it is not applied ...

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