CFE hopes for new tax regimen.

MEXICO CITY, Aug 26, 2002

The Federal Electricity Commission (CFE) is expecting that a new fiscal regimen put forth as part of the electricity reform will change the current tax scheme for one based on the company's profits, says company Director Alfredo Elias Ayub. Currently, the State-owned company pays a tax that is equivalent to 9% of the company's assets. Elias says this reaches some 40 billion pesos (US$4.08 billion) per year."We, at the CFE would ask not to pay this tax, which is a large chunk of money. In exchange, we would pay a tax based on profits, an earnings tax or something to that effect," he said. "This is a very capital-intense industry. Assets are very high and the 9% tax rate is extremely expensive."Elias also said that the government should assume the responsibility subsidies. He suggested the Treasury decide the subsidy level and the recipients, to pay that amount to the CFE.

URL: www.securities.com

Copyright 2002 Internet Securities, Inc., all rights reserved. A Euromoney Institutional Investor Company.

  SUBJECT CODE:     Enel 

News Provided by COMTEX (http://www.comtexnews.com)