30% Increase in IEPS Revenue from January to September

13:52 21/10/2024 - PesoMXN.com

Thanks to increased fiscal activity by authorities in Mexico, tax collection from January to September of this year rose by 5.3% compared to the same period last year.

The Tax Administration Service (SAT) reported on Monday that, in the first nine months, they managed to collect 3.697 trillion pesos (trillion in English refers to a million million), with the IEPS being the tax that performed best during this period. The Special Tax on Production and Services (IEPS) raised 449.938 billion pesos, which represents a real growth of 30% over the mentioned time frame. This tax is particularly sensitive to gasoline prices, as the Mexican government provides subsidies when international oil prices threaten to significantly raise fuel costs in the country. For this reason, the Treasury decides to reduce the IEPS rate applied to final prices at gas stations. Regarding VAT and income tax (ISR), the SAT collected 1.038 trillion pesos and 2.038 trillion pesos, which represented increases of 1% and 4%, respectively. The SAT emphasized the importance of the Master Plan for Taxation and Collection, which aims to establish fair conditions for tax collection without the need to create new taxes or increase current rates.

It’s interesting to note that, in times of economic uncertainty, growth in tax collection can be a positive sign of effective administration and a commitment to the country’s financial order. However, it is also crucial that these revenues are managed efficiently, investing them in areas that promote economic development and social well-being. Good fiscal management could be key to overcoming future challenges and maintaining stability in the Mexican economy.