Analysis: Mexico seen diluting tax reform to avoid Colombia-style discontent

FILE PHOTO: Demonstrators take to the streets during a protest of feminist collectives against the police and the excess of public force used to disperse peaceful protests, in downtown Mexico City, Mexico, May 29, 2021. REUTERS/Mahe Elipe/File Photo

MEXICO CITY (Reuters) - Mexico's government, in an effort to protect the country's nascent economic recovery and avoid the type of violent unrest seen in Colombia, has softened a planned tax reform, just as a recent electoral setback seems to confirm the need for caution.

Mexico's finance ministry has for several months floated a shake up of the tax structure of the country with the lowest fiscal take in the Organisation for Economic Co-operation and Development (OECD) group of industrial nations.