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Mexico to extend preferential tax schemes for border regions

MEXICO CITY, Nov 3 (Reuters) - Mexican President Andres Manuel Lopez Obrador said on Tuesday that fiscal incentives for businesses along the northern border will be extended, and that a similar program is planned for companies on the southern border.

Businesses in some municipalities near the U.S. border that derive at least 90% of their income from the border region and fulfill certain fiscal and legal criteria can already take advantage of preferential tax schemes.

“We will expand the program to the entire northern border region of the country,” Lopez Obrador said at a regular news conference.

The regime is currently in place for some municipalities in the states of Baja California, Sonora, Chihuahua, Coahuila, Nuevo Leon and Tamaulipas.

Lopez Obrador said he also was looking to roll out a similar program on the southern border, mentioning the city of Chetumal, the states of Quintana Roo and Chiapas, as well as some 10 industrial areas in the states of Veracruz and Oaxaca.

Reporting by Stefanie Eschenbacher and Sharay Angulo