Mexico considers hybrid tax exemption

It's been 40 years since Mexico began taxing vehicles. Originally, the money was meant to fund the Olympic Games that took place there in 1968, but the income has apparently proven indispensable as it's still collected to this day. If proposed legislation from the Partido Verde Ecologista (a.k.a. the Mexican Green Party) passes, though, hybrid vehicles may soon be exempted from that tax plus the 15-percent consumption tax. In contrast, older, larger and more polluting cars would be subject to a tax increase. Meant to increase sales of fuel-sippers, obvious benefits include a reduction in petroleum consumption and cleaner air. Proponents also cite a likely increase in sales of new cars in Mexico, which currently trail imported used cars from the United States by some 200,000 units annually. For this reason, lobbying groups representing Mexican automotive dealerships may get on board with the Green Party to push Congress to adopt the new measures.
[Source: Inside Line]