The Mexican Supreme Court announced last Tuesday that it had declared illegal for any of the cities in Baja California to collect public lighting taxes, better known as DAP, in the CFE bill.
Each city defined the DAP tax amount, and the CFE collected the money and passed it on to each government. It ranges from $17 to 55 pesos every two months, depending on the city, and it’s supposed to maintain and pay for public lighting.
The Supreme Court deemed the charge unconstitutional since the cities cannot charge extra for this service, as it’s supposed to be paid for with the money gotten from regular taxes.
Mayor of Ensenada Armando Ayala stated that the new ruling would hit Ensenada hard, which is already known to have severe budget deficits, as they are losing 6.6 million USD every year with the DAP charge cancellation.