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> 2013-10-19 10:47:24
Mexico proposes sharp tax hikes
(Vatican Radio) Mexico's Congress has approved proposals to curb the obese and squeeze the rich, with a scale of belt-tightening tax measures.
The proposals, approved by the lower parliamentary house, the Chamber of Deputies, now roll on to the Senate.
Legislators want to increase the price of a litre of soda and slap a five per cent sales tax on high-calorie junk foods.
More than 70 per cent of Mexicans are now clinically overweight, and Mexico suffers the highest levels of sugar diabetes in the world.
Legislators also want a rise in sales tax, between 11 and 16 per cent, on goods sold in states along the United States border. The tax hikes include animal foods.
As well, the wealthiest residents in Mexico will soon face whopping 35 per cent income tax bills.
Mexico's current tax collection system is the slimmest in Latin America.
Listen to the report by James Blears: