**Used Car Dealers Urge Extension of Vehicle Importation Decree at the Border**
Used car dealers are calling for an extension of the vehicle importation decree that affects the U.S.-Mexico border. Currently, about a thousand vehicles are stuck in border parking lots due to the inability to import them. In the past, import taxes ranged between 5,000 to 10,000 pesos. Kathya Torres from Grupo Logix emphasized that renewing the decree is crucial; otherwise, import taxes on vehicles could significantly increase, potentially reaching 50,000 pesos or more.
The decree, which has previously facilitated the importation of used vehicles without adversely affecting new car dealerships, involved paying a duty of just 1%. For cars aged five to nine years, the decree allowed for payment of half the regular tariff, plus 16% VAT, culminating in a total of 66% tax on the vehicle’s value. Should the decree lapse, costs would substantially rise.
Since 2011, the decree has been repeatedly extended without issue, and the latest decision expired at the conclusion of the previous administration. Guillermo Rojas Gómez, a treasurer in the used car sector, highlighted that they have not faced problems in past extensions. “We hope the federal government, through the Ministry of Economy, will take the initiative to issue a new decree,” he said.
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**Secondary Article: Border States and Economic Impact of Vehicle Importation**
In light of the discussion surrounding the extension of the vehicle importation decree, it’s important to consider the broader economic impact on border states. Recent analysis shows that Baja California ranks as the third state in revenue collection from the so-called “chocolate” cars – older vehicles usually imported from the U.S. However, it stands fourth in paving infrastructure completion, indicating potential mismatches in resource allocation.
Experts argue that the collection of import duties supports local economies, though there’s an ongoing debate on optimizing these revenues for public infrastructure advancements. Additionally, businesses stress the need for more streamlined import procedures to maintain efficiency and support job creation in the region.
The forthcoming decisions by the government on the decree extension will significantly impact the local economies bordering the U.S., potentially affecting industries reliant on used vehicle sales and related employment sectors.