Property owners in Mexico enjoy very low property taxes but that could soon change.
José Antonio Meade said property taxes achieve two important objectives: as a revenue source for municipal governments and as a tool for urban development.
He said the tax generates the equivalent of just 0.2% of Mexico’s Gross Domestic Product while in Latin America as a whole it represents 1.7%.
For member countries of the Organization for Economic Cooperation and Development the percentage rises to 2.2% and in the United States it’s 3.2%.
Ideally, he said, local governments could finance their requirements with their own income.