Latinnews Daily - 7 November 2003

The government's fumbling over the 2004 budget is about to create major problems. The main opposition party, the Partido Revolucionario Institucional, has rejected one of the key proposals in the budget. This is to extend Vat to food and medicines. The government argues that it needs to widen the Vat net in order to finance the cut in the overall Vat rate from 15% to 10%.