Controversial measure tacked onto budget bill would exempt payment for winner of radio spectrum auction
By Eduardo Garcia
Sentido Comun
In the heated discussions that have arisen in the wake of government proposals to collect new and higher taxes to replace the fall in oil revenues and taxes, one temporary measure is sparking a new controversy.
The item was amended to Article 1 of the Transitional Federal Law and approved by deputies of the lower house last week. It would delay for two years the annual fee that was to have been charged the winner of the upcoming concession for expanded use of the radio spectrum.
For some lawmakers and analysts, the moratorium does not make sense because of the government's effort to gain more revenue. Indeed, for many the measure insults the taxpaying population since it exempts payment for the use of a public entity, the radio spectrum.
"There is no technical reason, either legal or economic, much less ethical or moral, to make an exemption," wrote Javier Corral, National Action Party legislator for the state of Chihuahua, in a letter published in the Diario de Juarez, and who opposed the article when the Federal Voting Rights Act was debated in the House last week.
He estimates that the government would collect about 3 billion pesos ($226.26 million) if the exemption were not granted.
Corral's anger was heightened, he said, because those most likely to benefit from the grace period are among Mexico's most profitable and powerful companies in Mexico, particularly the television company Grupo Televisa.
"Deputies should wonder why a privilege of this size is, in effect, being given to the dominant television operator," Corral told the Camara when the measure was being debated. "Make no mistake this article is for the benefit of Televisa, the only company that has so far shown interest in bidding."
Corral now is urging senators to reject the article.
"I would not call [the waiver] absurd. It is a ridiculous concept that I do not think is right. It is immoral," said Lorenzo Meyer, a political analyst for the In Focus program which airs Monday night at the Channel 11 in Mexico City.
"At a time when officials say there are not enough taxes to maintain government operations, you, gentlemen, want to remove this burden of payment for a large company and allow them to live like kings," he said.
The controversy around the article has become an example of why people oppose the government proposal to charge more and new taxes.
