• REFORM: Mexico’s government is currently devising a tax reform that will be focused on expanding the taxable base and increasing efficiencies, coming sometime in the future, according to the Ministry of Finance. President Andrés Manuel López Obrador has insisted on no increased taxes.
• COLLECTION: The level of Mexico’s tax collection is extremely low, only accounting for 14% of the national GDP, placing it at the bottom of the list among other Latin-American countries. Mexican government officials say tax reform will be focused on expanding the taxable rate, increasing efficiencies, and reducing informality.
• CREATIVE: “A tax reform like the one we are thinking of, does not include an increase in taxes, it includes expanding the base, being more efficient, and we could review the structure of some taxes to make it more progressive,” said Gabriel Yorio, undersecretary at Mexico’s Ministry of Finance.
• LOWEST: One of the countries with the lowest tax collection in Latin America, Mexico, only collects 14% of the national GDP for tax purposes. According to numbers released by Spanish bank BBVA in December, pensions, debt service and assistance to state and local governments leave little space.
