Wednesday, December 25, 2024

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 UrzĂșa 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.

UrzĂșa 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.

UrzĂșa 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, UrzĂșa said there is a proposal to build a new 900-kilometer tourist railway between CancĂșn, 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 PolĂ­tico (sp)

Have something to say? Paid Subscribers get all access to make & read comments.
Claudia Sheinbaum, who's election was one of Mexico's biggest news stories in 2024

Mexico’s year in review: The 10 biggest news and politics stories of 2024

0
It was a year of great change in Mexico, as LĂłpez Obrador bowed out of public life and President Claudia Sheinbaum stepped into power.
The project addresses a major cross-border pollution problem by treating the sewage flowing north from the Tijuana River.

Tijuana River cleanup takes major step forward

2
Imperial Beach in San Diego, just north of the Mexico-U.S. border, is one of the country's most polluted beaches due to sewage flow from the Tijuana River.
Ears of dried corn in a big pile

Mexico loses GM corn trade dispute with US

9
Mexico will have to modify its restrictions on genetically modified corn imports after a trade dispute panel sided with the United States.