| | |  Business News 
Mexico President Sees No Tax Hikes in 2011 Budget
 Cyntia Barrera Diaz - Reuters
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August 25, 2010
 |  | I foresee that in general there won't be a proposal to boost taxes ... for the 2011 budget.
- President Felipe Calderon |  | | |
Mexico City - Mexican President Felipe Calderon said on Tuesday he did not expect to propose tax increases in the 2011 budget after the opposition rejected his initiative to boost government revenues for the current year.
"I foresee that in general there won't be a proposal to boost taxes ... for the 2011 budget," Calderon said in an interview with Radio Formula.
Last year, the conservative leader tried to slap a new tax on food and medicine, hoping he could use additional revenue to fund programs to combat poverty. His proposal was rejected by opposition parties in Congress.
In the end, lawmakers agreed to increase the value-added tax, known as IVA, to 16 percent from 15 percent for 2010.
Mexico's main opposition force, the Institutional Revolutionary Party, has already said it will oppose any new attempts to extend taxes to food and medicine this year.
The president, who is due to submit his budget plan in early September, also said that weak consumer confidence was a main factor behind Mexico's slow economic recovery.
"The consumer is skeptical. There is a negative feeling and that is hurting consumption," the president said.
Mexico is limping back from its worst recession since 1932.
(Editing by Paul Simao)
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