Mexico tax protests planned

Thousands are expected to protest on the streets of Mexico City

By the BBC's Central America correspondent, Nick Miles from Mexico City

Union leaders in Mexico say they expect thousands of people to take to the streets on Thursday in protest at plans to impose taxes on some foods and medicines.

President Fox wants to raise $12bn a year with his tax proposals

Increasing tax revenue is one of the central planks of President Vicente Fox's legislative plans for the new session of Congress, which began two weeks ago.

The unions want to be sure to make an impact.

They have invited people from across the country to converge on Congress.

From there, they will march to the central square, and that could create gridlock on the streets of the capital, Mexico City.

Harming the poor

The organisers say that President Fox's plans to impose consumer taxes on food and medicines will have a disproportionate effect on the country's poor.

At just 10% of GDP, Mexico has one of the lowest tax collection rates in the world.

President Fox says that has to change.

He wants to raise $12bn a year with his tax proposals.

Only then, he says, can he bring in spending programmes to improve the nation's schools and target the rural poor.

But there is also considerable opposition in Congress to the tax plans.

Earlier this year, they were rejected by opposition politicians and the intervening months have seen few people moving into the president's camp.