Mexico firmly opposes US remittance tax proposal

MEXICO CITY -- Mexico will deploy "the best political and legal defense" against the US initiative that proposes to impose an additional tax on remittance transfers, Foreign Minister Juan Ramon de la Fuente said Friday.

The initiative was presented on May 12 before the US House Ways and Means Committee, which handles tax issues, he said, noting that the measure "has no reason to exist" and represents a direct impact on millions of Mexicans living in the neighboring country.

The following day, under instructions from Mexican President Claudia Sheinbaum, a letter was sent to US legislators signed by Mexican Ambassador to the United States, Esteban Moctezuma, and the head of the North America department of Mexican foreign ministry, Roberto Velasco, expressing rejection.

The initiative is aimed at people who already contribute significantly to the US economy, many of whom have already paid taxes, he added.

Remittances sent from the United States represent a vital source of income for millions of families in Mexico.