No more 'white collar theft': Mexico orders end to corporate tax breaks

By Diego Oré MEXICO CITY (Reuters) - Mexican President Andres Manuel Lopez Obrador said on Monday his government will order an end to tax forgiveness for the country's largest companies, saying $20 billion in exemptions given by his predecessors was akin to theft by gangsters. Of the firms that benefited from tax breaks totalling more than 400 billion pesos, 58 are listed on the stock exchange, said Mexico's tax chief Margarita Rios-Farjat at the president's regular news conference. Nearly a third of the companies listed on the benchmark S&P/BMV IPC received tax breaks, she said

Reuters May 21, 2019 06:06:00 IST
No more 'white collar theft': Mexico orders end to corporate tax breaks

No more white collar theft Mexico orders end to corporate tax breaks

By Diego Oré

MEXICO CITY (Reuters) - Mexican President Andres Manuel Lopez Obrador said on Monday his government will order an end to tax forgiveness for the country's largest companies, saying $20 billion in exemptions given by his predecessors was akin to theft by gangsters.

Of the firms that benefited from tax breaks totalling more than 400 billion pesos, 58 are listed on the stock exchange, said Mexico's tax chief Margarita Rios-Farjat at the president's regular news conference.

Nearly a third of the companies listed on the benchmark S&P/BMV IPC received tax breaks, she said.

Lopez Obrador did not reveal the identity of the companies.

"It's like white collar fuel theft," he said, referring to the widespread stealing of gasoline from pipelines by organised crime that his government has tried to crack down on.

"This mechanism has been abused and it will be eliminated," Lopez Obrador added.

In a statement, Alfonso Ramirez Cuellar, a member of Lopez Obrador's leftist National Regeneration Movement (MORENA) who chairs the budget committee in the lower house of Congress, identified major local banks as beneficiaries of tax breaks.

According to Ramirez, publicly available data from 2017 showed that Citigroup's Mexican unit, which is known as Citibanamex, had 53.4 million pesos of tax written off, while its Mexican peer Grupo Financiero Banorte enjoyed a tax break of 30.1 million pesos.

Citibanamex and Banorte did not immediately reply to requests for comment.

(Reporting by Ana Isabel Martinez and Diego Ore; Additional reporting by Stefanie Eschenbacher; Editing by Jeffrey Benkoe and James Dalgleish)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.