Business association asks governor to reconsider tax increase

Members of the Business Coordinating Council (CCE), met at its headquarters Thursday to formally ask Baja California to reconsider tax increases approved by the Assembly a couple of months ago.

Roberto Valero, president of the Center for Economic Studies, reported that due to the absence of economic planning by the state and the reduction of federal funds that accentuated Baja California’s economic stagnation last year.

Based on the National Institute of Statistics and Geography Quarterly State Economic Activity Indicator, a form of advanced GDP report, the state went from a slowdown to a fall in real terms in the third quarter of 2019.

The report indicates the state has had two consecutive negative quarters, which means Baja California is in “technical recession.”

Valero, a college professor as well, added that 818 companies closed in Baja California last year.

Rodrigo Llantada, president of the CCE, said the state is about to receive more than 2.3 billion pesos, or $127.77 million, in additional funds above last year’s disbursement. The figure represents a 1 percent increase, the highest among the states along the U.S. border.

This, according to Llantada, leaves little excuse to increase taxes.

The business coalition called for the state government to carry out well-planned measures to cut budget, particularly in operational expenditures.

The business leaders also requested the state to reverse or, where appropriate, rethink all tax increases.

Last year, Assembly members approved tax increases on casinos, gas, gasoline, payroll and hotel services.