In Jalisco they approve the creation of a local Tax System

Guadalajara, Jalisco. The reform to the Political Constitution of the state that allows Jalisco to have its own local Tax System concluded the approval process to enter into force, after 113 of the 125 municipalities of Jalisco gave their endorsement.

With this reform, the local Congress is empowered to ratify the execution of fiscal agreements as long as their relevance is justified or, the state could adhere to the National Fiscal Coordination System and cede its collection powers in the agreed terms.

The reform also allows the head of the Executive Power, in his first three years of government, to terminate the fiscal relationship with the Federation as long as he demonstrates that the conditions that justified adherence to the pact are not met.

The statement of the approved reform states that “with the State Tax System, it is guaranteed that natural and legal persons contribute proportionally and equitably to public spending, in addition to giving certainty to taxpayers since it will be governed by the principles of financial discipline, transparency and accounting”.

The reform to the Political Constitution of Jalisco had been approved by the plenary session of the Legislative Power on May 26, but being a constitutional reform, it required the approval of 50% plus one of the municipalities of the state to enter into force.

The legislators included a transitory article so that in the current administration Governor Enrique Alfaro can review the fiscal pact in the next six months, after the approval of the reform; that is, during the second part of his six-year term.

The changes do not imply the exit of Jalisco from the fiscal pact, but, if it decides so, it could send its proposal to Congress, which should approve it with two thirds of the deputies that make it up.

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