MEXICO – Tijuana, Ciudad Juárez, Laredo, Mexicali and Nogales are the five cities with the greatest growth potential in the next two years, period of time that Programa de la Zona Libre de la Frontera Norte will last, according to Salles, Sainz-Grant Thornton.
“These 5 cities will stand out in the six northern border states that will benefit from the program, because they have their own economies, based on local businesses and not much on commercial chains,” added the partner of the Mexican firm, Luis Fernando Acosta.
Although the maquila is the strong sector of these cities, Acosta anticipated a greater growth of trade and services for them since stores, buy and sell businesses, distribution, tourist services and restaurants would reach a great boom in the short term.
“Lowering taxes generates greater dynamism in the economy, because people have more money to spend. You will begin to see more investment, restaurants, shops and local economy, not chains,” said the consultor.
He hoped that during February and March, SMEs can adhere to the fiscal stimulus decree at the northern border, which reduces VAT from 16 to 8.0%, while income tax for corporations reduces from 30 to 20%.
Source: El Economista