ANNOUNCEMENT 29 May 2020

The Mexican government decreased the tax incentives applicable to gasoline 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: 30/00/2020. 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 octubre de 2020. Available at: https://sidof.segob.gob.mx/notas/5601525

Official Gazette of Mexico. Diario Oficial de la Federación. DOF: 28/08/2020. 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 2020. Available at: https://sidof.segob.gob.mx/notas/5599274

Official Gazette of Mexico. Diario Oficial de la Federación. DOF: 29/07/2020. 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 2020. Available at: http://dof.gob.mx/nota_detalle.php?codigo=5597447&fecha=29/07/2020

Official Gazette of Mexico. Diario Oficial de la Federación. DOF: 30/06/2020. 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 julio de 2020. Available at: https://sidof.segob.gob.mx/notas/5595796

Official Gazette of Mexico. Diario Oficial de la Federación. DOF: 29/05/2020. 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 junio de 2020. Available at: https://sidof.segob.gob.mx/notas/5594050

Official Gazette of Mexico. Diario Oficial de la Federación. DOF: 29/04/2020. 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 mayo de 2020. Available at: https://sidof.segob.gob.mx/notas/5592431

Inception date: 01 Jun 2020 | Removal date: 31 Oct 2020

Tax or social insurance relief

On 29 May 2020, 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 (Agreement 51/2020).

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

  • from 40.40% to 0% in the case of gasoline,
  • from 45.96% to 0% for diesel used by the fishing industry,
  • from 36.76% to 0% in the case of diesel for the agricultural industry.

The previously applicable percentages were introduced by the Decrees adopted in January and March 2020 (please, see related state acts).

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.

Agreement 51/2020 originally sets the elimination of the tax relief to apply after the month of June 2020.

Updates

On 30 June 2020, the Secretariat of Finance and Public Credit of Mexico approved Agreement 68/2020, which extends the previous values for the month of July 2020.

On 29 July 2020, the Secretariat of Finance and Public Credit of Mexico approved Agreement 78/2020, further extending these values for the month of August 2020.

On 28 August 2020, the Secretariat of Finance and Public Credit of Mexico approved Agreement 90/2020, further extending these values for the month of September 2020.

On 30 September 2020, the Secretariat of Finance and Public Credit of Mexico approved Agreement 104/2020, further extending these values for the month of October 2020.

 

AFFECTED PRODUCTS

 
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