Videgaray: The government is not opposed to lower taxes

Finance Minister Luis Videgaray Caso said that if economic conditions allow, lower taxes could be a possibility in 2016.

According to Finance Minister Luis Videgaray, President Enrique Peña Nieto’s government “is not closed to lower taxes”, and if conditions permit, would be subject to an evaluation in 2016.

In an interview to Radio Formula with Ciro Gomez Leyva, Videgaray Caso said the current administration is committed to “not increase existing taxes or create new ones.”

The Finance Minister ruled out taxing food and medicine. He reiterated that the government set three axes in tax matters: no new taxes, no increase existing taxes and not reduce current tax benefits.

When asked if they could cut taxes, Videgaray Caso said that “if conditions permit, they could lower taxes but not at this time because the law of income has already been approved. However, n the coming years, if economic conditions permit tax rates could fall.”

The decision to lower taxes should be evaluated together with Congress. Conditions permitting reevaluation would begin in 2016. “The 2015 tax framework is already set,” he said.

Exchange rate
Speaking about the peso-dollar exchange rate, Videgaray said the Mexican peso has depreciated less compared with other currencies of emerging countries. While so far this year the peso has depreciated 6.7 percent, the Chilean currency has depreciated 15 percent as has that of Peru.

“While the foreign exchange market has liquidity, the Exchange Commission nor the Finance Ministry intervene. The market is what determines the exchange rate,” he said.

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