Mexican govt grants tax breaks to quake victims

Source:Xinhua Published: 2017/9/12 6:32:39

Mexico will grant temporary tax exemptions to victims of last week's powerful 8.2-magnitude quake, the Ministry of Finance said on Monday.

Those affected will also be able to deduct expenses on new fixed assets, such as a building, property, plant, equipment, etc.

These measures aim "to speed up the reactivation of the economy in communities impacted by the recent quake in the states of Chiapas and Oaxaca," the ministry said in a statement.

The two southern states were the hardest hit by Thursday's quake, the strongest to hit Mexico in nearly a century.

The waiver on tax obligations will apply to income taxes for the period from August to December of this year.

Expenses on new fixed assets can be deducted for the period from Sept. 7, the day of the quake, to March 31, 2018.

A few other tax breaks were included, as well as a more flexible social security payment plan for employers.

Also Monday, Finance Minister Jose Antonio Meade said the government has sufficient funds for the reconstruction of effort.

The ministry has requested Congress approve an additional 6.7 billion pesos (380 million dollars) for the Natural Disasters Fund (Fonden), Meade told reporters at an event.

"Between what the Fonden already has, plus these 6.7 billion ... we have enough to tackle the reconstruction," said Meade.

In the first half of the year, the disaster fund had more than 7 billion pesos, according to the ministry.

Authorities are in the process of assessing the damage, which will help them decide whether to request additional funds from Congress for next year, said Meade.

President Enrique Pena Nieto on Sunday night instructed members of his cabinet to travel Monday to Oaxaca and Chiapas to help coordinate the aid and recovery efforts.

So far, officials have confirmed 95 people were killed in the quake, mainly from collapsed buildings.

Posted in: AMERICAS

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