Mexico, Cars, and Taxes

Filed in archive Latin Culture on March 3, 2008

Today, a little culture, a little history, and a bit o'kvetching.

When you buy a car in Mexico (which is more expensive BTW) you need to:
* have a drivers license,
* get insurance,
* pay your registration (plates), and
* pay your "tenencia".

The "tenencia" is an ownership tax paid on all vehicles and amounts to... well, basically, every year you get to pay for the privilege of owning and using your very own vehicle. (Yes, this is in fact a WTF moment. Know that all of Mexico, save those that pocket the money, feel the same shock and irritation.)

Now for the history. This tax was originally instated in 1961 to help with the expense of putting on the 1968 Olympics in Mexico. The Olympics ended. The tax did not.

After implementing it for 38 years and getting loud complaints from the population, the government decided not to cancel, but to simply change the raison d'etre of this ridiculous tax. Poof! In 2006 they declared it was a tax to regulate car pollution.

So in 2008, you still have to cough up the payment. There's plenty of opposition to the law, and you will hear people gripe about it every year. But the new interest-free payment plans ought to make it less cumbersome to pay. And consequently extend this arbitrary government pick pocketing for another 40 years.