• NOT ENOUGH: Despite growing in 0.9% with respect to 2018, Mexico’s tax revenue collection did not reach the Ministry of Finance’s goal for of 3.0 billion pesos (USD 159.9 billion) for the first eleven months of 2019 mainly due to the slowdown in economic activity.
• RESULTS: According to new government data, tax revenue collection between January and November of 2019 reached 2.9 billion pesos (USD 154 billion) mostly attributed to the fall in collection of Value Added Tax (IVA) and income tax (ISR) which broadly represent half of total.
• EFFECTS: “The Value Added Tax (IVA) and the income tax (ISR) fell 3.7% and 1.6% respectively in real terms…por ciento as a result of lower economic activity”, the Ministry of Finance said on Monday. Mexico’s central bank latest GDP growth estimate for 2019 is between -0.2% and 0.2%.
• COMPARISON: Mexico has the lowest tax revenue in the 34-nation Organization for Economic Co-operation and Development (OECD). Mexico’s total government revenue as percentage of GDP was 16.1% in 2018 way below the organization’s 34.3% average.
