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Saturday, July 31, 2021

Yucatan stimulus package reduces taxes up to 100%

Plan targets municipalities in the state's interior

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Yucatan Gov. Mauricio Vila Dosal signs a fiscal stimulus package that includes three-year tax abatements. Photo: Courtesy

Merida, Yucatan —  To encourage more infrastructure investment and tourism services in interior of the state, Gov. Mauricio Vila Dosal signed a fiscal stimulus package that reduces or even eliminates taxes and duties in its first years.

The incentive is meant to bring more and better jobs to 105 overlooked municipalities, he said at a signing ceremony. The law doesn’t apply to coastal towns or Merida, but rather inland municipalities.

“In Yucatan, the priority is to generate better paid and formal (over-the-table) jobs for families in the interior of the state, so we are offering these fiscal incentives, which will create sources of employment that help people out of poverty,” said the state governor.

In the presence of tourism entrepreneurs gathered in the Governor’s Palace Hall of History, the president signed Decree 33/2019, which enters into force within 30 days.

For new businesses that qualify, the tax on lodging, business income and property is abated for the first two years and discounted by 50 percent in the third year.

At the municipal level, the tax on acquisition of real estate is eliminated. Fees for municipal licenses are also waived.

“The aim is to increase tourism services with new investments in the 105 municipalities, taking advantage of each one’s attractions and converting them into income generators for their inhabitants, thus generating more and better tourism products will stimulate the increase of the average stay of the visitor and the economic spill in the entity,” said Vila Dosal in the presence of the head of the Ministry of Economic Development and Labor, Ernesto Herrera Novelo; and the director of the Tax Administration Agency (AAFY), Juan Carlos Rosel Flores.

The governor explained that at least 54 percent of Yucatan’s tourist-centered establishments are concentrated in Merida. He wants to spread the wealth throughout the state.

“We will continue with the promotion of tourism in our state both nationally and internationally. We have the quality to grow the tourism industry in Yucatan and generate more opportunities and better jobs for Yucatecans,” Vila said.

The governor earlier rallied for a special economic zone, or EEZ, for Valladolid and 11 other municipalities.

But under federal law, states are allowed only one such zone, and Yucatan has already established Progreso’s EEZ.

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