Without tax reform, revenues in Mexico have been "de-petrolized": SAT; taxpayers foot the bill for public spending, it says

"Without the need to push a tax reform, today we can say that tax revenues are the backbone of public spending. We can say that we are living in Mexico the depetrolization of revenues; Pemex is no longer being squeezed, and through what we all contribute honestly, all Mexicans have this revenue capacity to fund public spending." This was stated by the General Administrator of Revenue Collection of the Tax Administration Service (SAT), Gari Flores Hernández González, during the appearance of Finance Ministry officials before committees of the Chamber of Deputies to analyze the 2027 economic package. He explained that taxpayers contribute 68% of the budget revenues contemplated in the Federal Revenue Law, which allows for significant increases in public investment in health, education, housing, infrastructure, the countryside, and social programs. He indicated that tax revenues are the backbone of public spending and a cornerstone of the national economy. "During the government of President Claudia Sheinbaum Pardo, we have already collected more than 9.2 trillion pesos. In less than two years, we have collected two-thirds of what was obtained during the entire six-year term from 2012 to 2018," said the SAT official. Since 2018, the proportion of tax revenues relative to GDP has shown a constant increase, without the need to create new taxes or raise the rates of existing ones, unlike previous years, when each increase was the result of a series of tax reforms that made life and business development more expensive in Mexico; moreover, these reforms had a transitory impact due to the implementation of aggressive strategies to evade their effects. This no longer happens today. "As we can observe, it is estimated that tax revenue this year, as the Undersecretary already mentioned, will reach a share of 15.4 percent of GDP, which represents growth of 2.7 percent in eight years of transformation." For her part, the Undersecretary of Finance and Public Credit, Carmen Bonilla Rodríguez, argued that the 2027 economic package aims to consolidate a new stage of growth with well-being, and that this would be based on three priorities: preserving social advances, accelerating public and mixed investment, and continuing to strengthen public finances. She explained that the public investment plan and the so-called mixed investment, which combines private resources, occupy a central place in the economic package for 2027. She informed the legislators that between 2026 and 2030, it is contemplated that 5.7 trillion pesos will be channeled through both avenues into the infrastructure plan to expand the country's productive capacity. You may be interested in: Deputies approve tax reform to the Customs Law in general; they seek to toughen penalties against fuel tax theft (huachicol fiscal) / Coparmex rejects tax reforms and those against foreign investment; they will discourage private participation, it states / Tax reform and the OECD / Join our channel! EL UNIVERSAL is now on WhatsApp! From your mobile device, find out the day's most relevant news, opinion pieces, entertainment, trends, and more. aov/bmc