NEW MEXICAN TAX.

Auckland Star, Volume LXIX, Issue 155, 4 July 1938, Page 9

NEW MEXICAN TAX.

IMPOST ON ALL IMPORTS

NEW YORK, July 3

The Mexican Government announces plans to impose a 12 per cent tax on all exports, including raw materials, simultaneously establishing a quasipermanent limitation upon imports, which are largely from the United States, by establishing a double exchange rate, says the Mexican City correspondent of the "New York Times."

Tentative plans include the pegging of the peso at five to the dollar for exports and four to the dollar for imports, thus apparently establishing central bank control.

The objects are said to be first to make up the budget deficit resulting from the loss of petroleum taxes plus the economic collapse, and second to subsidise exports and maintain imports at the minimum.

The peso, which has fallen gradually since the expropriation of the foreign oil holdings, when it was fixed at 3.(50 to the dollar, has now reached 4.75 to the dollar.