Mexican legislators participating in a special committee for the automotive and steel industry this week organized roundtable discussions between officials from the Ministry of Finance and Public Credit (SHCP) and the industry to reach a consensus about how to prevent tax reform from damaging the sector.
The committee president, Congressman Salvador Romero Valencia, stated that some measures included in the tax reform initiative proposed by President Enrique Peña Nieto may devalue the dynamism that the sector has shown in recent years. Among the possible effects of charging Value Added Tax (VAT) to assembly materials, imported machinery and equipment would be an increase in the cost of production, which would result in the sector losing competitiveness.