## AMLO Announces Halved Tax Rates in Northern Border Under Sheinbaum’s Administration
President Andrés Manuel López Obrador and newly elected national leader Claudia Sheinbaum Pardo have agreed to continue the fiscal stimuli for Mexico’s northern border. Starting from October 1, 2024, the upcoming government will maintain the 50% reduction in Value-Added Tax (IVA) and Income Tax (ISR), which have been in place since 2019.
During a press conference at the National Palace’s Treasury Hall on August 28, 2024, López Obrador announced that Sheinbaum Pardo has committed to renewing the presidential decree to continue this program. This initiative is aimed at enhancing the economic development of 43 municipalities in the northern border region, spanning states such as Baja California, Sonora, Chihuahua, Coahuila, Nuevo León, and Tamaulipas.
“I have signed an agreement to ensure that IVA and ISR will be halved in the border areas and to standardize fuel prices, significantly increasing the minimum wage almost threefold in these regions,” López Obrador recalled.
The President said that the renewal of the decree, which expires at the end of September, will ensure that residents in the border area continue to benefit from these tax incentives. “People living near Texas, for example, save an average of three pesos per liter of gasoline, and in some cases, even four pesos less,” stated López Obrador.
This move includes collaboration with the Secretary of Finance and Public Credit, Rogelio Ramírez de la O, to finalize the 2025 federal budget. López Obrador assured that while the current administration will handle the fiscal stimuli measures, the adjustments in salaries will be the responsibility of Sheinbaum’s administration starting from December.
### Municipalities Included in the Northern Border Region:
– **Baja California**: Ensenada, Mexicali, Playas de Rosarito, Tecate, and Tijuana
– **Chihuahua**: Ascensión, Coyame del Sotol, Guadalupe, Janos, Juárez, Manuel Benavides, Ojinaga, Praxedis G. Guerrero
– **Sonora**: Agua Prieta, Altar, Caborca, Cananea, General Plutarco Elías Calles, Naco, Nogales, Puerto Peñasco, San Luis Río Colorado, Santa Cruz, Sáric
– **Coahuila**: Acuña, Guerrero, Hidalgo, Jiménez, Nava, Ocampo, Piedras Negras, Zaragoza
– **Nuevo León**: Anáhuac
– **Tamaulipas**: Camargo, Guerrero, Gustavo Diaz Ordaz, Matamoros, Mier, Miguel Alemán, Nuevo Laredo, Reynosa, Río Bravo, and Valle Hermoso
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## Secondary Article: Broader Economic Implications of Halved Tax Rates in Mexico’s Northern Border
In addition to the government’s commitment to maintaining fiscal incentives in the northern border region, experts weigh in on the broader economic implications of these measures.
### Economic Boost and Investment Opportunities
According to financial analysts, the continuation of reduced IVA and ISR rates is expected to foster more investment and economic activity in these areas. Businesses operating in the border region have enjoyed increased competitiveness due to lower operational costs, benefiting from reduced taxes, and fuel prices.
### Regional Integration and Cross-Border Trade
The halving of tax rates also plays a critical role in regional integration and cross-border trade with the United States. Given the geographical proximity and economic ties with US states, the fiscal incentives help Mexican border cities maintain economic parity and attract more cross-border commerce.
### Potential Challenges Ahead
However, some economists caution that these measures need accompanying structural reforms to ensure long-term sustainability. They argue that while tax breaks provide immediate economic relief, ensuring robust infrastructure, workforce development, and administrative efficiency are essential for lasting growth.
### Community Response
Residents and local business owners in the affected municipalities have expressed positive sentiments towards the continuation of the tax cuts. Many anticipate that these measures will continue to support local economies, contribute to better living standards, and offer more job opportunities.
As the new administration under Claudia Sheinbaum Pardo prepares to inherit these policies, the focus will likely include ensuring that the benefits of the tax cuts are broadly distributed and that the regions continue to attract both domestic and international investments.
For more updates and insights on this policy and its implications, stay tuned to TJGringo.com.
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