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Thursday, October 28, 2010

NEWS & POLITICS - Mexico needs to raise property taxes

The Paris-based OECD has released the results of a study which shows that Mexico needs to significantly raise its property taxes from 0.2% of GDP to 2.0% of GDP. Despite an increase in state government tax revenues since 2007, the local (city and municipal) authorities have not turned to property taxes as a source of additional income, and thus are wasting an opportunity that would enable them to offer better services, according to official data. The report has not passed unnoticed in Mexico and there is general recognition that, if the country is to move into the age of technology, much more needs to be spent in education of people at every level and in providing new infrastructure. Property taxes look like the best way to achieve such substantial investments as the wealthiest people will pay the most. The taxes on a similar coastal property in the United States would be several (many?) times that in order to provide the infrastructure and services that citizens demand. Bottom line ? Expect a slow but relentless increase in taxes.