Mexican President announces changes that could affect the local economy

LAREDO,Texas(KGNS)- Mexico's newly-inaugurated president, Andres Manuel Lopez Obrador spoke in front of thousands of Mexican citizens at El Zocalo in Mexico City on his inauguration night.

President Andres Manuel Lopez Obrador, or AMLO, says he will lower sales taxes in cities that border the United States.

The initiative would lower the IVA, Mexico's sales tax, from 16% to 8%. This would apply to all Mexican border cities along the U.S.- Mexico border, including Nuevo Laredo.

Some Mexican shoppers we spoke to tell us there's a lot more that goes into their decision to shop on this side of the border, saying many products are not available in their country and deals can still be more advantageous even with the proposed tax cuts.

But even if some business is lost, Laredo Chamber of Commerce President Miguel Conchas tells us he is confident Mexican shopper will continue visiting our city.

The new tax incentive will take effect at the start of the new year.