Strategic
Review-


General
Motors


Mexican vehicle makers, including General Motors , want the ISAN federal tax on
new vehicles abolished, according to a report in Mexican financial daily El Economista .

General Motors Mexico head of public relations Carlos Gelista said that in
addition to paying 15 percent value-added tax (IVA), new vehicle buyers are
currently required to pay ISAN, effectively boosting the price of a new vehicle
by 25 percent.

Gelista said that many Mexicans would consequently choose to purchase their
new vehicles in the United States when import tariffs on vehicles from Mexico’s
North American Free Trade Agreement (NAFTA) partners, the United States and
Canada, are abolished on January 1, 2004.

He said non-export sales by Mexican vehicle makers would suffer unless ISAN
is scrapped.


To view related research reports, please follow the links
below:-

Global
Automotive Legislation

The
automotive industry in Latin America: Mexico, Brazil and Argentina Forecasts
to 2005