Storm over telecoms provisions

In a novelty for Mexico, opponents of the tax on Internet services staged a campaign to flood Twitter with tweets opposing the measure, using the tag #internetnecesario. The group got a boost from Senate president Carlos Navarrete (PRD), who endorsed the campaign. (Universal 10/25)

Another provision defers royalty payments by new cell phone operators for two years on new radio frequency spectrum to be auctioned for 3G networks. Purificación Carpinteyro, the former Undersecretary of Communications, called it, “a privilege inserted to address exclusively the interests of Televisa.” Long-term PAN critic of telecoms policy Javier Corral called it “a huge fiscal benefit for the wealthy telecoms owners,” that was negotiated between the Ministry of Finance and PRI Senate leader Manlio Fabio Beltrones to get PRI support for the Internet tax. (Reforma 10/26)

Anti-poverty levy hit as back-door tax on food and medicine

The opposition hit the proposed 2% anti-poverty tax as a back-door attempt by the PAN to introduce the value added tax on food and medicines, which are currently exempt. Senate coordinator Carlos Navarrete (PRD) declared the proposed new tax “dead and buried.”  The PRI was more cautious. Francisco Rojas, the PRI leader in the Chamber, said that while the PRI opposed taxing food and medicine, “There is nothing definitive; we are just getting a first impression. It will be several weeks before we have a position.” (Reforma 9/12)

Parties unite in rejecting Zedillo’s call for fiscal reform

Former president Ernesto Zedillo said in a speech that the economic measures taken to date were inadequate and that Mexico needed a new fiscal reform. He said:

We have to carry out a definitive fiscal reform, that gives financial solidity to the Mexican State, and enables it to carry out its responsibilities….Unfortunately, the petroleum wealth, that has given us so much has, in certain measure, also taken much from us. It has taken away our willingness to face responsibly the recognition that we are a country with needs.”

Congressional leaders of all three parties united in attacking Zedillo. PRI Senate leader Manlio Fabio Beltrones called his statements “verbal incontinence.”  Senator Carlos Navarrete of the PRD said that “Zedillo is mistaken in his diagnosis; he contributes very little with his opinion.”  Emilio Gamboa, PRI leader in the Chamber, said Zedillo was “irresponsible.” His PAN counterpart Héctor Larios said, “The tax laws, without any doubt, need to be reformed, however it’s not prudent or appropriate to revise them in the middle of a global economic crisis.” (Reforma 5/18, 19)