Mexican tax reform to avoid sales tax on food, medicine – officials

Mexico's President Nieto attends the first working session of the G20 Summit in Constantine Palace in Strelna near St. PetersburgMEXICO CITY (Reuters) – The Mexican government has decided against levying a controversial sales tax on food and medicine as part of a key fiscal reform it will present on Sunday, officials in the ruling Institutional Revolutionary Party, or PRI, said on Saturday. The government is aiming to boost Mexico's weak tax revenues by around 4 percentage points of gross domestic product (GDP), and was seriously considering widening the application of value added tax (VAT) to include food and medicines. …