The Tax Administration Service (SAT) highlighted that during the first two years of the current administration Article 28 of the Constitution was modified to prohibit the forgiveness of taxes, since 413,000 million pesos were forgiven during the two previous administrations.
In matters of foreign trade, customs procedures in Mexico are governed by the Customs Law and its Regulations, by the General Rules of Foreign Trade, published every year by the Ministry of Finance and Public Credit (SHCP), and by an Agreement of the Ministry of Economy (SE).
The legal framework also includes legislation regulating national taxes, such as import taxes.
The General Administration of Customs (AGA), a dependency of the SAT, is the entity in charge, among other things, of facilitating and controlling the entry and exit of merchandise from Mexican territory, as well as collecting tariffs and other trade rights.
The SAT also highlighted that, in order to reduce tax evasion and avoidance, universal compensation was modified and as of 2020 tax fraud was equated with organized crime.
“The amendments to the law and actions to reduce tax evasion and avoidance, generated a perception of justice that motivated taxpayers from all economic segments to get up to date with the SAT, strengthening the redistributive policy of income,” said the SHCP it’s a statement.
During the first two years, tax collection efforts to recover debts totaled 736,000 million pesos; of which 43% corresponded to large taxpayers; 41% to inspection and foreign trade; 6% to enforced collection and 10% to collection efficiency.
At the same time, during the pandemic and economic crisis, the tax collection efforts made it possible to achieve an additional collection of 467,000 million pesos during 2020, equivalent to 2.3% of GDP, the same percentage of additional income similar to those obtained with the 2014 tax reform.
This made it possible to maintain tax revenues at the same level in real terms as the previous year.
The evaluations made to the SAT by international and qualifying organizations recognized that the tax collection strategy allowed guaranteeing sufficient resources for the health sector, as well as for social and priority programs.
“The balance of fiscal policy will allow our country to start the economic reactivation in a position of greater advantage than other economies,” the statement added.
According to the SAT, the rating agency Fitch ratified the investment grade for Mexico’s sovereign debt, indicating that “tax revenues have exceeded expectations and the authorities have been able to reduce debt contracting in 2020.” The document highlights the agreements reached with the Large Taxpayers for the payment of taxes
“The International Monetary Fund indicated in its annual evaluation of Mexico (called Article IV) that the fiscal response of the SAT has been positive and an atypical value compared to the other countries of Latin America and the G20”, concluded the SAT.