Mar 16, 2005, 8:45 AM
Post #13 of 24
What Talosian says is incorrect. All grocery bills do not round to pesos. It is common, in my experience, that centavos are rounded to the nearest 10 centavo piece because that is the lowest form of effectivo circulating in the market. Some markets may round to the nearest peso for charitable drives and this rounding is programmed into the store's computers in the case of a supermarket such as Soriana. It is more than hilarious to think of the cashier asking permission from some miserly fuddy duddy to extract this miniscule contribution to a local charity from his change due.
Let's see, 10 centavos is about 1/10th of a peso which, in turn, is worth about $0.089USD. Therefore, 10 centavos is worth $0.0089USD or less than 1/10th of a penny. And, bear in mind that we are talking about rounding fractions of 10 centavo pieces. Let's say my bill is 9.45 Pesos and I give them a 10 Peso coin. I get back a 50 Centavo coin in change. Therefore, I have been shortchanged by five Centavos or 1/20 of one 0.89ths of a U.S. Cent.
Esperanza is right, I believe, that groceries taken home to process in one's kitchen are not subject to the IVA at the final point of sale. If one buys various types of items at a superstore, one will find the IVA assessed on only those items subject to the IVA. That is a bit misleading in my view since the IVA may be assessed at any number of points in the manufacturing and distribution process. I don't know how this works in Mexico but if this tax is assessed in a manner consistent with the value added tax in Europe, then each step in processing an item is taxed based upon incremental value added during the process. Likewise, if a manufacturer has to pay an IVA on machinery & equipment needed to manufacture an item, that adds to the manufacturer's costs and, in turn, the manufacturer's prices in order to achieve a necessary margin at sale.
At least Soriana disclosed its extraction and subsequent charitable donation of Talosian's meager change due. Meanwhile, the Mexican government had its hand in the till many times all the way from the seed in the milpa to the cornflake in his breakfast bowl. This was serious money and they never disclosed nothin',nohow, noway. Talk about not seeing the forest for the trees.