| | |  Business News 
PRI Stops Pushing for IVA Reduction
 Yvonne Reyes Campos - The News
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October 19, 2010
| | PRI leader: Deputies wanted disaster fund instead. (The News) | |
Mexico City – The Institutional Revolutionary Party (PRI) parliamentary group in the Chamber of Deputies will not insist on reducing the Added Value Tax (IVA) from 16 to 15 percent in exchange for the creation of a 55-billion peso fund to rebuild the states damaged by recent natural disasters.
The PRI also agreed with the federal government’s proposal to increase the Gross Domestic Product (GDP) growth rate from 3.8 to 3.9 percent, to increase by two dollars the price of barrels of oil (from $63US to $65US per barrel), to apply a five-peso tax per package on tobacco sales and to establish a public deficit of 0.5 percent, said Francisco Rojas Gutiérrez, the PRI coordinator in the Chamber of Deputies.
At a press conference, Rojas said that 180 of the 239 PRI deputies attended the meeting in which they agreed to keep the IVA percentage at 16. According to Rojas, the PRI members made this decision in support of the millions of Mexicans who have lost their goods due to natural disasters.
Not lowering the IVA implies political costs, he said, but added “we are willing to take them on.” Rojas said the federal government had accepted the proposition to establish a national reconstruction fund.
“It is essential to support helpless Mexicans and to reopen schools,” he said. Rojas said security concerns also influenced the group’s decisions. “We cannot pretend that security is not a national priority. We will continue supporting, without restriction, the resources allocated for public security,” Rojas said.
The PRI also agreed to pass law initiatives that would generate jobs and boost medium and higher education.
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