Business leaders in León, Mexico, many from the footwear and leather sectors, have met federal government representatives to complain about a proposed tax reform.

The business community told government representative Ector Ramírez that plans to introduce a single business tax payment would not work, claiming that the government’s failure to take into account labour costs would lead to the loss of jobs. The proposal is to charge businesses a flat tax rate of 16% in 2008, rising to 19% the following year. The Mexican government has calculated that this move will allow it to raise an extra $12 billion in the first year, and $16.5 billion extra in 2009.

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