Fiscal incentive for the northern border agreement was signed in NL

 

As of January 1st, in the municipalities of the zone neighboring with the United States increased the minimal wage to double; the Income Tax was reduced 20 % as well as the VAT, from 16 to 8 %; while the price of fuel was homologated with the one from the other side of the border, thus was noted by the current president of Mexico, Andres Manuel Lopez Obrador, during the signing of the Decree of Fiscal Incentives of the Northern Border Region.

“As of the signing of this agreement begins a special program for the Northern Border.  We decided to carried it out in Monterrey as a tribute to businessmen and entrepreneurs in the State.  We will support with fiscal incentives the northern area of the country and specially the entire neighboring zone with the United States.  It is a very important project to encourage the investment and creation of jobs and use the economic strength of the American Country,” the president explained.

The official added that the amount of federal participation will be increased for Nuevo Leon on 11 % real terms and 15 % in nominal terms, which means municipal governments will have more resources because those are for States and municipalities.

“Regarding the municipality of Anahuac, as it is part of the free zone, the aforementioned taxes will be reduced in the entire municipality to benefit workers and maquilas, where employees will receive the double minimal wage,” he noted.

The municipalities of minerals extraction will also receive directly the taxes collected from resources extraction.  There are five municipalities in Nuevo Leon that will receive such funds.

“In order to improve the national refining system, we will invest around 5 billion pesos, which will mean a high economic revenue and jobs in the area of communications and transportation, on new roads.  There will also be invested one thousand 700 million pesos in preserving roads in Nuevo Leon,” ended Lopez Obrador.

WAGE MEASURES ARE SEEN POSITIVELY

Through a release, Index Nuevo Leon explained their posture regarding the increase of minimal wage in the northern border of Mexico is positive, since it adjusts to the economic outlooks of the country.

“It is important mentioning that IMMEX companies pay a minimal wage higher than the one settled in the law, therefore increasing the current wage does not disarrange the productive projections of the sector,” the release states.

In addition, Index Nuevo Leon pronounced in favor of better payments for the Mexican labor market, since they considered that workers and their families are empowered.

“While wage increases do not cause inflationary pressures and important disarrangements in favor of a better economic payment for workers,” they ratified.

The association also noted that the General Minimal Wage policy must recover its more remunerative historical level in four decades, as in 1976, the minimal wage was equal to 290.74 current pesos.

 

SEDEC SETTLING IN NUEVO LEON WAS CELEBRATED

 

Manuel Montoya Ortega, general director of CLAUT of Nuevo Leon, underlined that with the arrival of the Ministry of Economy to the entity expect to have a more fluent communication, such as it has been happening in the last eight years.

“During the six-year period of Calderon as well as on Pena Nieto had a very good relationship and fulfilled many projects, we hope that by having them here we will be working together and with a high interaction,” he noted.

Meanwhile, Cecilia Carrillo, general director of CLELAC, underlined that fiscal incentives are an encouragement for the bordering zone and mentioned that he expects that in the future incentives can be provided for the rest of Nuevo Leon.

“We have to continue working on safety and logistics issues to increase productivity, those two variables facilitate the import and export of materials and we also have to invest more in certain processes that are still not here to continue improving,” he ended.