Treasury says tax breaks produce losses of 676bn pesos.

MEXICO CITY, May 21, 2003 (El Universal/Corporate Mexico by Internet Securities, Inc. via COMTEX) -- Tax breaks, concessions and exemptions for some sectors and companies cost half of the tax revenues registered in 2002, or 676 billion pesos (US$65.78 billion), reported Roberto Schatan, tax specialist at of the Treasury Secretariat.Schatan said that the legal loopholes allowed taxpayers to avoid paying taxes, such as in the insurance industry, where 70% of companies did not report taxable profits due to the deficiencies in the tax law and the breaks for mergers and acquisitions in the industry.The official said that during the last 20 years, Mexico's tax revenue have increased just 2%, while the average increase for countries in the Organization of Economic Cooperation and Development (OECD) reached 14%.Schatan said that last year domestic tax revenues represented 11% of GDP, which was far below the average of OECD member countries at 27%. This article has been translated by Internet Securities, Inc. as a service to its customers. Internet Securities, Inc. makes no representation or warranty regarding the accuracy or content of the translation.

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