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Business sector of Cancun requests new government include state in VAT decrease

Cancun, Q.R. — Businesses in Cancun are requesting that the next government consider decreasing the Value Added Tax (VAT) for the state to 8 percent.

The business sector of Cancun has joined together to ask that the next administration of president-elect, Andrés Manuel López Obrador, include Quintana Roo for a decrease in VAT since it has been proposed for the northern border states.

President of the Caribbean Business Coordinating Council (CCE) Inna Germán Gómez, says they are trying to set up working groups to discuss the issue with their federal counterparts.

“If it were viable, we would be making a front with the southern business sector since now is when we should be united,” she said.

The rate impacts the final consumer, not so much the entrepreneur since it is transferred through the product, however, Germán Gómez considers it important that citizens join in the effort.

López Obrador made a proposal to reduce VAT to 8 percent in northern border states at the start of his new administration. Upon the announcement, Governor Carlos Joaquín González questioned why the south was not included, to which López Obrador said they are different geographical situations and he had another vision in terms of economic and social development.

“We are proposing that the states generate a kind of VAT that complements what they would be getting as a reduction, but this remains in the state, thereby adding to the federation,” López Obrador explained.

The proposal for the northern border states would be a new tax of 3 percent for the state party, which, when added to the federal tax of 8 percent, would be 11 percent. Currently, the state of Quintana Roo pays 16 percent VAT.