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(Jun 02, 2008) Mexico's Supreme Court of Justice validated most of the fiscal reform package, known as the gasolinazo, "gasoline boom," on May 12, 2008. The Court upheld the new federal tax that the public has had to pay since January 2008 when buying gasoline and diesel. The Court considered that the new federal tax on energy is not unconstitutional and does not infringe on the principles of legality, proportionality, and fiscal equity. In addition, the Court held that the states may not apply a local, alternative tax on the sale of gasoline and diesel, because this is a federally pre-empted legislated subject area. The Justices had practically no debate before upholding the constitutionality of the taxes. Three of the votes taken in connection with the ruling were decided unanimously and the other passed ten to one. (Fernando Ramírez de Aguilar, La Suprema Corte Avala el Gasolinazo, EL FINANCIERO, May 13, 2008; & Victor Fuentes, Avala Suprema Corte Impuesto a Gasolina, REFORMA, May 13, 2008.)

Author: Norma Gutierrez More by this author
Topic: Transportation and public works More on this topic
Jurisdiction: Mexico More about this jurisdiction

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Last updated: 06/02/2008