ANNOUNCEMENT 30 Aug 2019

The government of Mexico decreased the tax incentives applicable to fuel used by the local fishing and agricultural industries.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising

SOURCE

Official Gazette of Mexico. Diario Oficial de la Federación. DOF: 30/08/2019. Acuerdo por el que se dan a conocer los estímulos fiscales a la gasolina y al diésel en los sectores pesquero y agropecuario para el mes de septiembre de 2019. Available at: http://dof.gob.mx/nota_detalle.php?codigo=5570853&fecha=30/08/2019

Official Gazette of Mexico. Diario Oficial de la Federación. DOF: 31/07/2019. Acuerdo por el que se dan a conocer los estímulos fiscales a la gasolina y al diésel en los sectores pesquero y agropecuario para el mes de agosto de 2019. Available at: http://dof.gob.mx/nota_detalle.php?codigo=5566889&fecha=31/07/2019

Inception date: 01 Sep 2019 | Removal date: 30 Sep 2019

Tax or social insurance relief

On 30 August 2019, the Secretariat of Finance and Public Credit of Mexico adopted Agreement 95/2019 modifying the applicable tax exemptions for fuel used by the fishing and agricultural industries.

The new legislation decreased the percentage of the subsidized tax credit as it follows:

  • from 56.10% to 46.38% in the case of gasoline,
  • from 55.73% to 54.76% for diesel used by the fishing industry,
  • from 44.59% to 43.80% in the case of diesel for the agricultural industry.

The tax-cuts adopted in this Agreement apply to the Special Tax on Production and Services (i.e. IEPS by its acronym in Spanish), an excise tax imposed to non-essential goods and services like gasoline, diesel, tobacco and alcohol. 

These tax exemptions were introduced in December 2015 to compensate for the new fuel price policy that was approved for 2016 (please, see related state acts). They were justified by defining them under the umbrella of the Energy Law for the Agricultural Sector introduced in 2002. Since its implementation, this fiscal stimulus is announced on a monthly basis by the Secretariat of Finance and Public Credit and only apply to local producers registered in the census managed by the Mexican Secretary of Agriculture.

The new bonifications apply for the month of September 2019.

 
Update
On 30 September 2019, the Secretariat of Finance and Public Credit of Mexico adopted a new Agreement modifying the applicable tax exemptions for fuel used by the fishing and agricultural industries (please, see related state acts).

AFFECTED PRODUCTS

 
N/A