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Mexico aims to boost tax revenue by cutting breaks

Monday, May 6, 2013

Tax breaks for attending "civic values" courses, tax-free sales of second-hand furniture, special treatment for call centers and an informal economy employing six out of 10 workers are all in the line of fire as Mexico prepares a long-awaited tax overhaul.

An analysis of budget data shows Mexico's extensive network of tax breaks and stimulus programs generate costs equal to about half the taxes actually collected.

Mexico has the lowest tax revenue in the 34-nation Organization for Economic Co-operation and Development, crimping its ability to spend on health, infrastructure and social programs vital to boost living standards and growth.

Source: Reuters