Mexico delayed an increase in the withholding tax charged on interest paid to foreign banks. The rate through June 30 will remain 4.9%. However, after that, the rate will increase to 10%. The action comes after foreign banks complained to the Mexican government that they are disadvantaged compared to banks lending from the United States. The 4.9% rate for interest paid to US banks is written permanently in to the US-Mexican tax treaty. The withholding rate for interest paid to other foreign banks was scheduled to increase to 10% last January 1. This increase has been delayed for six months, the Mexican government said in March.