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 Mexicos
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
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