• EVASION: The López Obrador administration suspended Monday import permits of 82 companies arguing unspecified non-compliance with Mexican tax laws, a development that could add a new burden for the flow of products like petrofuels and chemicals into the country.
• BURDEN: The suspensions are deemed to be temporary while companies clarify any of the alleged infringements but Mexico’s tax agency SAT’s decision would affect performance of companies like Spanish energy firm Repsol, Kansas City Southern’s Mexico unit along with mining conglomerates.
• REGULATION: Since at least last year, private importers of fuels into Mexico have confronted a series of regulatory obstacles raised by the López Obrador administration which openly favors state-run firm Pemex. However, Mexican authorities the suspension of import permits seeks to fight tax evasion.
• DISRUPTIONS: “There have been disruptions in the flow of refined products into Mexico, due to some regulatory developments and other factors…that have affected both our performance and our outlook for the full year”, said Pat Ottensmeyer, CEO of Kansas City Southern, during an earnings call last week.
