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Mexican Water Boss Proposes Green Tax On Water,
by Mike Godfrey, Tax-News.com, Washington
Friday, February 05, 2010
Jose Luis Luege Tamargo, director of the National Water Commission (Conagua), has joined the debate on tax reform and recommended a tax on drinking water of about 1%, with revenues to be diverted to environmental projects, such as the re-forestation of upper watersheds.
Users in Mexico’s federal district (DF) have been subject to an unpopular new water rates tariff as of January 1, when water utility SACM began charging users of drinking water services with a tariff based on their presumed socioeconomic status. The tariff system involved zoning the city into one of four earning categories, but according to Cronica, users in the Aragón neighborhood had been unfairly categorized as middle class, while many houses in the area had corrugated iron roofs.
In a presentation to members of Rotary International, Tamargo said the Mexico Valley aquifer is overexploited with thousands of unauthorized wells identified, so the situation is out of control. He recalled that the city sinks between 10 inches and 16 inches a year. It is therefore very important to promote sustainable development activities in the forest and preserve the upper watershed, which are water catchment areas.
The water director also noted that the city of Mexico had a short timescale to resolve its serious water problem, which needed a wider approach to include the whole river basin.
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