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SourceMex PDF file 1995 right arrow Apr

Zedillo's Move to Raise Value-Added Taxes Draws Nationwide Protests

LADB Article ID: 56165
Category/Department: Mexico
Date: 1995-04-12
By: LADB Staff

President Ernesto Zedillo's decision to raise the value- added tax (impuesto al valor agregado, IVA) has generated broad-based protests around the country. Under the economic austerity measures announced by Zedillo on March 9, the IVA was increased to 15% from 10%, effective on April 1. The increase in the IVA does not apply to food and medicines, but it does affect most other consumer goods. According to observers, immediate price increases were reported on April 1 for such items as transportation, soap, cigarettes, books, and magazines and newspapers. In Mexico City, stores were nearly empty on April 1, the day the tax increase went into effect.

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