Jorge Santos Reyna, president of the Chamber of the Processing Industry (Caintra) of Nuevo León, assured that the increase in the payroll tax proposed by Governor Samuel García Sepúlveda will increase the levels of informality in the metropolitan area of Monterrey.
“The payroll tax goes against formal employment and formality in the industry of Nuevo León, because it will generate more informality,” he told Forbes Mexico.
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With the increase in the tax burden, small and medium-sized companies will find it difficult to hire more workers, he said.
The organization was part of the delegation that met with President Claudia Sheibaum Pardo before she left for Washington.
On November 24, Carlos Garza Ibarra, Secretary of Finance and General Treasurer of Nuevo León, proposed an increase of one percentage point in the Payroll Tax, which would go from 3 to 4 percent.
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Companies pay more than 17,563 million pesos in payroll tax to the government of Nuevo León per year.
The increase did not find support from industrialists, since they see it as a threat to their operations.
Nuevo León requires capital to continue with the construction of infrastructure works such as the Monterrey Metro, a key work in mobility ahead of the World Cup.
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