Mexico Lower House OKs revised gov't tax plan

Reuters

MEXICO CITY, Oct 17 (Reuters) - Mexico's Lower House ofCongress on Thursday gave general approval to a revisedgovernment tax plan that aims to boost receipts by nearly 3percent of GDP by 2018.

The bill was revised on Wednesday to raise the top incometax rate on a sliding scale to 35 percent, impose a 5 percenttax on junk food and roll back plans to apply sales tax onrents, mortgages, property sales and school fees.

Finance Minister Luis Videgaray said earlier on Thursday therevisions would leave the government with a revenue shortfall of55.7 billion pesos ($4.4 billion), which the government isexpected to seek to plug by raising its oil revenue forecast.

The bill must still be passed by the Senate, which isexpected to approve the reform by the start of November. Thebill is tied to the 2014 budget, which must be signed off bymid-November.

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