(13 On Your Side) – A five percent sales tax increase in San Luis, Rio Colorado, has residents on the Mexico side outraged.
Residents are staging protests to
block the Port of Entry Lanes for traffic driving into Mexico.
Its double-edged sword.
Paying more in sales taxes in Mexico could
drive more residents there to come across the border to shop. However, staging
protests to block traffic could make it harder for residents to cross back into
deterring them from coming across altogether.
13 On Your Side spoke to Ana Flores,
who lives in San Luis, Rio Colorado.
Normally, the cost of living on the U.S. side of the border is more expensive, but Flores
tells us that right now it is actually cheaper for her to come across the
border and buy her groceries in Arizona.
That's because a new sales tax is
being imposed in Mexico
has made it too expensive to shop there.
"We can't afford it now," said Flores. "We'll come over to this side."
The sales tax in San Luis, Rio Colorado, has gone up
form 11 percent to 16 percent.
For residents, that means they'll
pay an additional 80 cents for every $5.00 spent.
That's about $0.30 more than what one
would pay in the U.S.
"As far as the economy, it makes it
harder for those that are living over there," she said.
To show their disapproval of the
tax, residents in San Luis Rio Colorado are
staging several protests this week by blocking traffic crossing into Mexico.
"They're closing down the line to
get the attention of the government over there," Flores
But blocking the line does more
damage to those on the U.S.
side, who will have to wait in a line that already stretches for miles on a
San Luis City Spokesman Javier
Morales says there is not much they can do, but to patrol the streets to
control traffic as much as possible.
"We have limited resources but we
are communicating with all our departments to control the traffic problem"
Flores says the increased sales tax will
only hurt the economy because residents will be forced to travel to San Luis, Ariz., to do
their shopping—which could mean a loss of thousands of dollars for San Luis,
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