Mexico plan to beef up tax revenues nears final Senate approval

By Michael O’Boyle, Miguel Gutierrez and Dave Graham MEXICO CITY (Reuters) – Mexico’s Senate on Wednesday was close to passing a package of measures to bolster the country’s weak tax revenues, including higher taxes for the rich, levies on sugary drinks and junk food, as well as a charge on stock market gains. After giving general approval to the fiscal bill late on Tuesday, the Senate must still vote on divisive sections that lawmakers want to repeal or amend, a process which has been held up by opposition from conservatives. The fiscal reform is one the main planks of President Enrique Pena Nieto’s economic agenda, and although it will not raise as much new revenue as had originally been hoped, it has prompted vigorous attacks from opponents and lobbyists. Disputes over the bill, which aims to introduce a new top income tax rate of 35 percent, risk complicating negotiations over other reforms sought by the Revolutionary Institutional Party, which lacks a majority in Congress.