Mexico grants tax breaks to storm victims

MEXICO STORMS/RECOVERY

Added to the food for Mexico's flood victims, being unloaded here by naval forces, Mexican President Enrique Peña Nieto issued a decree awarding tax breaks to citizens in areas affected by tropical storms Manuel and Ingrid. EFE/STR
Added to the food for Mexico's flood victims, being unloaded here by naval forces, Mexican President Enrique Peña Nieto issued a decree awarding tax breaks to citizens in areas affected by tropical storms Manuel and Ingrid. EFE/STR

— Mexican President Enrique Peña Nieto issued a decree awarding tax benefits to citizens in areas affected by tropical storms Manuel and Ingrid, which left 123 people dead, the government said Tuesday.

Among the benefits is the elimination of estimated income and businesstax payments for August, September and October, the treasury said in a statement.

The package also includes upfront 100 percent deductions for durable or capital goods purchased between Sept. 15 and Nov. 30.

Agricultural, forestry and fishing enterprises will be allowed to claim value added tax refunds on a accelerated basis to improve their cash flow.

People paying tax debt in installments will be exempted from making payments in September, October and November.

The purpose of these fiscal measures it to contribute to the economic reactivation of the sectors affected and to preserve jobs in the areas of states like Chihuahua, Guerrero and Veracruz that were devastated by the torrential rains.

A state of emergency remains in place in 312 municipalites in 14 states due to the storms, while 39,000 people remain in shelters.

The state hit hardest was Guerrero on the southern Pacific coast.