Sheinbaum seeks to reimburse US tax on cash remittances: Monday’s mañanera recapped

The United States’ proposed tax on outgoing remittances, the upcoming renewal of Mexico’s judiciary and the appointment of a controversial former government official to an international role were among the issues President Claudia Sheinbaum spoke about at her Monday morning press conference.

Here is a recap of the president’s June 30 mañanera.

Reduction of US tax on remittances to 1% an ‘achievement’ of ‘our compatriots,’ says Sheinbaum 

Sheinbaum noted that the U.S. Senate’s proposed tax on remittances sent abroad from the United States is just 1% and will only apply to cash transfers, if approved by the U.S. Congress.

(A marathon voting session in the U.S. Senate on Donald Trump’s “One Big, Beautiful Bill” was still taking place at the time of writing.)

The president asserted that pressure exerted by Mexicans in the United States was a major factor in the reduction of the proposed rate, from 5% originally, and 3.5% in legislation approved by the U.S. House of Representatives.

“That achievement is of our compatriots, mainly due to the sending of letters to senators, especially by those who have dual nationality,” Sheinbaum said.

“… A lot of letters arrived [to senators],” she said.

“… How did the wording end up? It ended up at [a] 1% [tax], but only on remittances sent in cash. All the electronic transfers will have a 0% tax. And more than 90% [of remittances] are sent by electronic transfers,” Sheinbaum said.

“For those who send in cash, on Friday this week we’re going to announce a special program … in order to be able to reimburse that 1%,” she said.

Sheinbaum subsequently noted that “according to the Bank of Mexico, 99% of remittances [to Mexico] are sent by electronic transfer.”

“… And those who send in cash are a very small percentage. And for those who send in cash, we’re going to provide a reimbursement of that 1% through the [government] Finabien card,” she said.

Judicial system with new judges will ‘work well’

A reporter noted that judges elected at Mexico’s first-ever judicial elections, including Supreme Court justices, will assume their positions on Sept. 1. Many of the judges elected are aligned with, or seen as sympathetic to, the ruling Morena party, leading to claims that an essential check on executive and legislative power will be lost.

Sheinbaum asserted that the judicial system will “work well” once the judges elected on June 1 assume their positions.

“Better than the current one, much better, and it will become stronger so there is justice in the country, not like now, with a very corrupt judiciary,” she said.

A new prisons ‘policy’ is coming, says Sheinbaum 

A reporter noted that around 20,000 people have been arrested for high-impact crimes since the current government took office on Oct. 1.

The latest figure, provided by Security Minister Omar García Harfuch last week, was in fact 24,652 people.

“Where do they go? In which prisons are they? Are you thinking about opening new detention centers?” the reporter asked.

“There is also a policy for penitentiary centers,” Sheinbaum responded.

“We’ll announce it in due course,” she said.

Ex-COVID czar will be Mexico’s delegate to WHO 

Sheinbaum confirmed that former deputy health minister Hugo López-Gatell will be Mexico’s next representative to the World Health Organization.

She said she didn’t know the exact date he would start in the position as Mexico’s delegate to the Geneva-based specialized United Nations agency.

“I appointed him,” Sheinbaum said, noting that the designation doesn’t require the approval of the Senate.

López-Gatell became a household name in Mexico due to his leadership of Mexico’s (widely criticized) pandemic response. He later became Mexico’s addiction prevention czar.

Former presidential candidate and current National Action Party Senator Ricardo Anaya was among the people who criticized the appointment of López-Gatell to the WHO role.

“Doctor death, the person responsible for many of the [pandemic] deaths, is being named as Mexico’s representative to the World Health Organization. Our deepest, most forceful rejection of that appointment,” he said.

By Mexico News Daily chief staff writer Peter Davies (peter.davies@mexiconewsdaily.com)