Chihuahua Congress approves tax exemption initiative for severance and retirement funds

The Chihuahua State Congress has approved an initiative to be sent to the Federal Congress of the Union seeking to reform the Income Tax Law (ISR). The proposal aims to grant a total tax exemption on resources derived from severance pay (finiquitos), liquidations, and retirement or old-age disability subaccounts.

Legislators argued that these funds represent accumulated savings and essential social protection for workers concluding their professional lives. The initiative, supported by figures such as Deputy Francisco Sánchez Villegas and Commission President Jorge Soto Prieto, seeks to prevent the government from retaining significant portions—up to 35 percent—of these payments, which are intended to provide economic stability during periods of unemployment or retirement.

Additionally, the local legislature approved a separate measure to reform the Federal Labor Law to recognize November 2, Day of the Dead, as a mandatory national holiday in Mexico, citing its status as Intangible Cultural Heritage of Humanity.