MEXICAN TAXATION
TO BALANCE THE BUDGET. [BY CABLE PRESS ASSN. COPYRIGHT.] NEW YORK, July 2. The "New York Times” Mexico City correspondent says: The Government has announced plans to impose a 12 per cent, tax on all Mexican exports, including raw materials. The Government is simultaneously establishing a quasi- permanent limitation of imports into Mexico, which come largely from the United States, by establishing a double exchange rate. The Government’s tentative plans include the pegging of the peso at five pesos to the dollar for imports. Thus the Government is apparently establishing Central Bank control of experts and imports. The Government s objects are said to bo, lirctly, to make up a budget deficit resultin'’’ from the loss of petroleum taxes, plus an economic collapse; and, secondly, to subsidise Mexican exports and at the same time to maintain imports into the country at a minimum. The peso has fallen gradually on exchange after the expropriation of the foreign oil holdings, when it was fixed at 3.G0 to the dollar. The peso has now reached 4.75 to the dollai.
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Greymouth Evening Star, 4 July 1938, Page 7
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178MEXICAN TAXATION Greymouth Evening Star, 4 July 1938, Page 7
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