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Mexico Eliminates 20% Tobacco Tax [12/30-4]

Excerpts from: Mexican Congress tweaks 2004 income bill, eliminates 20 percent tobacco tax

sfgate.com [12/29/03]

Mexico's lower house of Congress approved the Senate's changes to next year's income bill, removing a proposed additional 20 percent tax on cigarettes.

The house voted unanimously Sunday in favor of the revised bill, which will give the government 2.76 billion pesos (US$246 million) less in excise taxes because of the elimination of the new cigarette tax.

Cigarette manufacturers had complained that the 20 percent tax, on top of the existing tax, would encourage contraband

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