Category Taxation in South America

Mexico’s Sugar Tax Sees Success

January 8, 2016 Taxation in Mexico

MEXICO CITY – Despite previous doubts, Mexico’s sugar tax has reduced the consumption of sugary drinks in the country.

The sugar tax recently enacted in Mexico has been shown to have had a positive effect on consumer spending habits, with consumption of sugary beverages having fallen since the measure was put into force.

In 2014 Mexico introduced a tax of 10 percent on the sale of sugar-sweetened drinks, a move which placed Mexico at the forefront of countries introducing tax measures aimed at reducing the consumption of unhealthy foods.

According to the results of the study, the tax led to a 6 percent reduction in the sale of sugary drinks, compared to the average level of sales of the previous two years.

Further, in 2015 the level of sales was 12 percent lower than the previous level...

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Argentina to Cut Export Tax on Agricultural Commodities

December 15, 2015 Taxation in Argentina

Agricultural taxBUENOS AIRES – Argentinian farmers will soon breathe a sigh of relief, as the government aims to drop taxes on the export of agricultural commodities, though the move is raising fears that a flood of products on the market will push international prices even further.

On December 15th the newly elected President of Argentina Mauricio Macri announced that he has agreed to new tax measures aimed at easing the burdens faced by the national agriculture sector.

The President announced that the export taxes previously levied on wheat, corn, beef and sorghum will be eliminated entirely.

Currently exports on wheat and corn are set at rates as high as 23 percent.

In addition, the export tax on soybeans will be cut from a rate of 35 percent to 30 percent, with further cuts of 5 percent per year be...

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Brazil Cuts Subsidies and Spending

September 15, 2015 Taxation in Brazil

BRASILIA – The government of Brazil plans to significantly cut spending on housing, infrastructure and healthcare, while simultaneously cutting subsidies.

In a press conference held on September 14th the Planning Minister of Brazil Nelson Barbosa and the Finance Minister of Brazil Joaquim Levy jointly announced that the government would cut spending and tax breaks in order to help balance the national budget.

In order to reduce the levels of government spending, approximately 1 000 government employees would be fired, while the remaining staff would face salary freezes.

Further, 10 out of the country’s 37 ministries would be closed off, while expenditures on national housing programs, healthcare, broadband infrastructure, and sanitation would be reduced.

The government would also cut th...

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Brazil Launches Tax Debt Incentive Program

July 23, 2015 Taxation in Brazil

BRASILIA – Brazil will be offering companies the opportunity to pay off tax debts by trading in current tax credits.

On Jul 22nd the government of Brazil announced a new program allowing business to reduce their tax debts through tax credits.

Businesses which have outstanding tax debt will now have until September 30th to join a program whereby tax credits related to non-operating losses can be used to reduce taxes owed, instead of being cashed in.

The tax credits can be used to pay up to a maximum of 57 percent of the tax debt, with the remainder to be paid in cash.

It is currently estimated that as many as 29 000 companies will be eligible to take part in the program, potentially using up as much as BRL 860 billion in tax write credits.

The new measure is intended to help the governme...

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Soda Tax Reduce Consumption in Mexico

June 17, 2015 Taxation in Mexico

MEXICO CITY – Mexico’s recent soda tax has been proven to be effective, especially among low-income earners.

According to the results of a new study conducted by the Mexican National Institute of Public Health and the University of North Carolina, the tax on the sale of sugary beverages in Mexico has had a positive and measurable effect on reducing the consumption of such drinks in the country.

The tax, which as first imposed in 2014, is levied at a rate of approximately 10 percent of the sale price of any drinks containing added sugar.

As a result of the 10 percent tax the consumption of sugary drinks has fallen by an average 6 percent over the course of 2014.

Further, the tax had a significant effect on the consumption patterns among low-income earners, with the purchase of sugary drink...

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