The SAT Will Exceed Its Revenue Expectations for 2024
Without the need to raise taxes, the Tax Administration Service ( SAT ) is set to surpass its revenue target for this year, which is 4.942 trillion pesos, according to Antonio Martínez Dagnino, the head of the agency, and Claudia Sheinbaum, the President of Mexico, during the morning press conference. Preliminary data from the tax authority indicates that, from January to December 2024, total tax revenues will amount to 4.914 trillion pesos, with VAT and income tax being the most significant contributions to the treasury, while the Special Tax on Production and Services (IEPS) and foreign trade taxes recorded the highest increases. “As of December 23, we have achieved a 99.5% compliance rate in tax revenues, and for non-tax revenues, we already have a 107% compliance rate; with one more week left in the year, resources continue to flow into the public treasury,” stated Antonio Martínez Dagnino during the morning conference led by Claudia Sheinbaum.
When compared to last year's revenues, tax revenues showed a growth of 5.0%; specifically, income tax (ISR) increased by 1.6% in real annual terms, reaching 2.641 trillion pesos; VAT rose by 0.5%, totaling 1.422 trillion pesos, while the IEPS saw a remarkable increase of 34.2%, generating revenues of 623.847 billion pesos; other taxes, including those related to foreign trade and the sale of new vehicles, grew by 12%, with revenues exceeding 33.590 billion pesos, as detailed by the official. “With just one week left until the year closes, we are confident that we will reach our set goal. The SAT has achieved appropriate tax collection; by fighting against corruption and privileges, we have been able to increase our revenues. Regarding Pemex's rights, which is a new obligation, we are sure we will fulfill the 30% intended for the well-being of the citizens of Mexico,” the President said. “This reflects honesty, which is a defining characteristic of the SAT team, and is essential, as no other country proposes to challenge corruption and privileges to increase public revenues,” Sheinbaum added.
It is encouraging to see how the SAT manages to outperform expectations without needing to raise taxes. This suggests that efficient management and a fight against tax evasion can lead to higher revenues for the government, which is crucial for strengthening the economy. Transparency and proper management of public resources are fundamental to fostering citizen trust and ensuring sustainable economic growth.
