New purchasing scheme to avoid corruption; IVA to be halved near border

The incoming federal government will implement a centralized purchasing system to avoid corruption, Mexico’s future finance secretary said this week.

Carlos Urzúa said the new system would be similar to that used when buying products from retail giant Amazon and that all purchases would be controlled and monitored by the Secretariat of Finance.

He explained that when government personnel need to make a purchase, they will log on to a system which presents them with a range of options from suppliers that have already negotiated prices with the finance department.

Urzúa said the type of system to be introduced is already in place at the Institute of Social Security (IMSS), where it is used to buy medications.

The new system will “considerably” reduce corruption, the future finance secretary said.

Urzúa also said there is a proposal to establish a duty-free zone in Mexico’s northern border region where the value-added tax (IVA) would be halved from 16% to 8%.

He explained that a similar scheme existed in the 1990s but clarified that whereas at that time all of Baja California was included, the incoming government is only planning to implement the reduced tax rate in the more immediate border area, which includes cities such as Tijuana and Mexicali.

“It will help economic development at the border.”

He also said the new administration is considering the creation of a new mining fund to counteract negative effects that the industry has on communities near mining areas and that the agricultural secretariat would seek to provide incentives for greater production of key crops such as beans and corn by providing small-scale farmers with fertilizers rather than monetary aid.

In addition, Urzúa said there is a proposal to build a new 900-kilometer tourist railway between Cancún, Quintana Roo, and Palenque, Chiapas, that would serve as a trigger for economic growth and development in the south of the country.

(A newly-elected senator from Quintana Roo said today the train project would begin next year.)

All told, the new Andrés Manuel López Obrador-led administration will initially implement 38 strategic actions across all government secretariats, the prospective finance secretary said.

Source: El Financiero (sp), Animal Político (sp)

Have something to say? Paid Subscribers get all access to make & read comments.
Skyscrapers along Paseo de la Reforma in Mexico City.

Mexico’s 2026 growth outlook improves in Banxico and Citi surveys

0
Median forecasts rise in surveys by Banxico and Citi, with 2027 growth seen near 1.9% and year-end inflation just under 4%.
Ex-INE president Guadalupe Taddei

Finance Ministry blocks accounts of former electoral institute chief and associates

0
National Electoral Institute ex-President Guadalupe Taddei is reportedly among 25 people added to the Blocked Persons List, days after Taddei's sudden resignation.
A group of migrants prepares to cross the Rio Grande into the U.S. from Piedras Negras, Coahuila, in December 2023.

Mexico in Numbers: How many people are emigrating from Mexico?

0
While 1.2 million foreign-born residents live in Mexico, even more people are emigrating to other countries. How many people are leaving, and what states have the most emigrants?
BETA Version - Powered by Perplexity