20 | SEP | 2019
Mexico could raise $3.6 billion by imposing taxes on Netflix, Spotify, and Amazon Prime
Mexico is looking for ways to increase its tax revenue - Photo: File Photo/EL UNIVERSAL

Mexico could raise $3.6 billion by imposing taxes on Netflix, Spotify, and Amazon Prime

11/09/2019
13:41
Reuters
Mexico City
Dave Graham
-A +A
Digital platforms and services have become wildly popular in Mexico

A Mexican sales tax on foreign digital businesses providing audio or visual services could generate tax revenue of about MXN $3.6 billion pesos a year, a senior lawmaker from Mexico’s ruling party, Morena, said on Tuesday.

On Monday, the Finance Ministry said it is in talks to levy the charge on foreign online businesses, and the ruling party has sent a bill to Congress to legislate for the tax.

“If we approve the initiative, the Mexican state could obtain around MXN $3.6 billion pesos a year,Ricardo Monreal, Senate leader of Morena, told a news conference.

“I’m not talking about Uber, I’m not talking about Airbnb,” Monreal added. “I’m only talking about the audiovisuals. Essentially, Netflix, Apple, Spotify ... Amazon Prime and another, there are four or five.”

Mexico has pursued new sources of revenue to help plug an income gap after changes in the way national oil company Petroleos Mexicanos (Pemex) contributes to state coffers.

Mexico’s overall tax take is the lowest in the 36-nation Organisation for Economic Co-operation and Development (OECD). In 2017, it stood at 16.2% as a proportion of gross domestic product (GDP), less than half the OECD average.
 

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