Mexico’s Supreme Court on Monday said it would scrap the country’s “tax on rich” on real estate assets, saying it violated the Constitution.
The ruling by the Constitutional Court was expected to come into effect by the end of June.
The tax on the wealthy was a cornerstone of President Enrique Pena Nieto’s economic recovery program and has drawn criticism from critics, including critics of the president’s policies.
The constitutional court has ruled against the plan, saying the law does not apply to property in the private sector and has been misused.
The ruling will have wide-ranging consequences for the economy, the Supreme Court said.
The court has been asked to declare the tax unconstitutional and to set a trial date for a ruling.