MEXICAN GOVERNMENT ANNOUNCES INCENTIVES TO RESCUE AILING MAQUILADORA INDUSTRY.

SourceMex Economic News & Analysis on Mexico | October 22, 2003 | Copyright

The Mexican government is attempting to rescue the maquiladora industry through simplification of paperwork and elimination of certain taxes levied on assembly plants along the US-Mexico border.

In a proposal drafted jointly by the Secretaria de Economia (SE) and the Secretaria de Hacienda y Credito Publico (SHCP), President Vicente Fox's administration is seeking to phase out the payroll tax (Impuesto Sustantivo de Credito al Salario, ISCAS) and reduce the income tax (Impuesto Sobre la Renta, ISR) for maquiladora operations. The tax reduction is seen as a ...

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