Business organization rejects tax increase

A group of business organizations rejected Gov. Francisco Vega’s plans to increase taxes and fees for next year.

According to the businessmen affiliated with the Entrepreneurial Coordinating Council, the state has reported deficits during every year of the administration and a continuous increase in long- and shortterm debt.

In a press conference, the business leaders said the lack of financial planning has translated into lack of payment to teachers, other branches of government and independent agencies.

They said they are worried at the insistence to make fiscal commitments that will not be addressed by this administration.

The businessmen called upon Gov. Vega to cancel projects like the super emergency center called, C5i, the desalination plant at Rosarito Beach and infrastructure projects in Tijuana.

Also, they pointed out that with disregard to the financial crisis the administration pretends to pay those projects with increased revenue through an increase of taxes and other services.

“Solving problems of cash flow with tax increases is an easy exit, but leaves potential private investment in the state at risk,” the organization said.

The businessmen called for Gov. Vega to instead control expenditures, something they say hasn’t happened in the six years of the administration.

The organization also called for an emergency financial advisory council, composed by government officials and business representatives to find a solution that analyzes objectively and transparently the financial situation.

In a press release, the state insisted blame for the issue lies with the Mexican government for its failure to disburse extraordinary funds for education.

Regarding the proposals made by the business organization, the state said they will be taken into consideration.

About the ongoing infrastructure projects, the state responded these address significant needs for residents, especially the lack of water in coastal cities, as well as public safety.

Those issues, the state added, need to be resolved in order to maintain and increase Baja California’s competitiveness while reducing poverty.

Finally the state said tax increases represent a serious and responsible request to confront the financial reality in the state.