Sticker shock!
There hasn't been much publicity about Mexico's new Federal tax reform law going into effect next month and it is a biggie. The legislation will raise the sales tax in Baja California 5% over night. What does this mean? It means those of us that live in Baja will have a cost of living increase a minimum of 5%. Fuel, water, electricity and all goods are going to take a hike. The law is supposed to exclude food but I will have to see it to believe food doesn't increase as well.
Visitors will also be impacted with higher prices. I have never been one to beat around the bush and want to let everyone know our charter fishing prices have been increased for 2014. This increase isn't to make profit but is to pass on to consumers our added expense. It is the only way we can maintain the quality of our boats and the service we provide.
Looking at the world picture our fuel costs will still be lower than the US and most international fishing destinations. Coupled with one of the richest fisheries on the planet Baja will remain a bargain comparatively.
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Sticker shock
General consensus blames the upcoming tax increase on the corrupt Mexican government and believes politicians are lining their pockets. I can't say that isn't so but living here 24 years I have observed some incredible progress.
The standard of living of local Mexican people has improved dramatically. Today there is opportunity for everyone to have a cell phone and satellite TV. Many kids in school have their own computers and if not most classrooms have them available. Mexico has a health care system that works and encompasses even the poorest. Most own cars and highways are no longer littered with pot holes. The days of visitors trading Hershey bars and Playboys are long gone.
The new tax reform will also initiate a new electronic recipt (factura) only policy. This will create more accountability and eliminate much of the black market. This is a huge move and demonstrates progress in modernization and eliminating corruption.
The powers in Mexico City might be self serving but they are also allowing the good people of the country to improve the way they live. Contrary to the perception the media has tried to portray, Mexico is a safe and wonderful place to raise a family and an outstanding tourist destination.
My statement about the media reminds me of a story I just have to share. In October my brother-in-law and his brother were visiting to do a little fishing. About a week after their return home to Wisconsin one of them went on a hunting trip. Returning from hunting he developed a blood clot and was hospitalized. It blew my mind when I heard the doctor treating him suspected he got the clot in Mexico. I'd like to know how you catch a blood clot in Mexico? It is perception created by the media that everything bad happens in Mexico and it just aint so.
I don't know how I got on this rant but am going to jump down off my soap box now, go have some holiday cheer and hang my stocking on our chimney.
Wishing everybody a warm and wonderful holiday season.
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Mark Rayor
teamjenwren.com
markrayor.blogspot.com
http://www.facebook.com/JenWrenSportfishing
US cell 310 308 5841
