Income tax rate for Mexico's Bachoco will increase in 2010

Mexican poultry producer Industrias Bachoco SAB (IBA) will book a one-time charge of about MXN200 million (US$15.3 million) for deferred taxes in the fourth quarter as a result of tax changes that will take effect next year.

In a filing with the Mexican Stock Exchange, Bachoco said the charge will not affect its cash flow.

As a result of tax reforms approved by congress earlier this year, Bachoco said its income tax rate will increase by two percentage points in 2010.

Bachoco's thinly traded B shares were unchanged at MXN25.05 (US$1.92) in afternoon trading on Tuesday (Dec 29).