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Posts Tagged ‘World Bank’

A positive part of the tax reform proposal by Senators of the PRI is raised to lower the rate of VAT to 12 percent, because lower rates, fewer distortions in the economy, said the senior economist for Mexico World Bank (WB), Joust Dadaism.

However, he said, the tricky part would be to broaden the tax base, possibly to include food and medicine, which are now exempt or zero rate, “and that might have some regressive impact on income distribution in Mexico” .

In his view, any tax proposal that in Mexico this approach should be to increase revenue, as our country “does not collect a large percentage of its GDP through taxes.”

Moreover, in recent years the level of oil production in the country, which represents an important part of public-sector income has fallen more than 25 percent and the risk of diminishing a bit more, so that have to start replacing oil revenues by tax revenue.

Referring to the proposal of Senators of the Parted Revolutionaries Institutional (PRI), said a positive part is that it needs to reduce the rate of Value Added Tax (VAT) to 12 percent.

“Within the proposal was referred to a supporting part to lower rates is that fewer distortions in the economy, obviously also offset by expanding the base, and we think this is a positive part of the proposal,” he said.

As part of a press conference of the World Bank Country Director for Mexico and Colombia, Gloria Gadolinium, Dadaism said the hardest part of this proposal is to do that effectively raise more or not.

The World Bank is one of the specialized agencies of the United Nations, which is defined as one source of financial and technical assistance for developing countries. Its purpose is to reduce poverty through low-interest loans, interest-free loans at banking and economic support to developing nations.

It consists of 186 member countries. It was created in 1944 and is headquartered in Washington, USA.

The story, in 1944, as part of the negotiations preceding the end of World War II, was born at the time what became known as the Breton Woods financial system, composed of two institutions, which are essential for understanding policy development that took place from the second half of the twentieth century: the International Bank for Reconstruction and Development (IBRD) and International Monetary Fund (IMF).

The BM (abbreviated form of the name) was conceived at the outset, in order to help European nations in the reconstruction of cities during the postwar period was gradually expanding their functions, creating more agencies would operate in parallel with this, integrating what we know today as the World Bank Group (WBG).