Mexico is far from achieving tax equity

Companies that signed contracts with Pemex later received tax write-offs

Mexico is far from achieving tax equity
The SAT revealed that thousands of people received tax waivers during the two previous administrations - Photo: Yadin Xolalpa/EL UNIVERSAL
English 21/10/2019 09:09 Mexico City Editorial Actualizada 09:09
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In regards to taxes, Mexico registers huge gaps, as well as in social and development issues. There are geographical areas and sectors that have more benefits than others. The salaried employee automatically pays taxes through deductions made to their paycheck, in contrast, large consortiums have received quitclaims and debt cancellations worth millions. The contrast becomes even more evident

Today, EL UNIVERSAL reveals that from the 21 companies that signed contracts with Pemex Exploration and Production (PEP), 9 of them also received tax cuts for MXN $5,500 million. This double benefit raises questions about its legality.

These companies were favored with PEP contracts when the head of the division was accused of asking for bribes to assign contracts, moreover, these companies also appear on a list released by the Tax Administration Service (SAT) a few weeks ago, where the tax write-offs granted by the Felipe Calderón and Peña Nieto's administrations are revealed, which are calculated in MXN $247,000 million, applied to 9,000 taxpayers.

Read more about the Mexican politician who owes MXN $900 million in taxes.

In September 2019, the lower chamber modified the 28th constitutional article to ban the President from granting tax write-offs and exemptions. The measure is now in the Senate and it will represent an increase in tax collection but the authorities will have to go beyond so that the number of taxpayers increases and so that salaried employees are not the only ones who pay taxes.

For example, in regard to the informal economy, there is a chance to expand the number of taxpayers. There are millions of people throughout the country, who occupy public places to commercialize products every day, without contributing to the national finances. On the other hand, merchants leaders take advantage of the situation and request payments that end up in their pockets or are given to corrupt authorities.

Read more about Mexico's plan to tax Netflix, Amazon, and Airbnb.

The similarities between large companies and street vendors include the fact that until now, both of them avoid paying taxes, a practice that should be eradicated. In Mexico, one of the pending issues is tax equity. How long will it take to implement it?


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