Mexican Treasury (SHCP) updated the Special Tax on Production and Services on gasoline, cigarettes and flavored drinks
MEXICO, CDMX (Times Media Mexico) – The Ministry of Finance and Public Credit SHCP (Mexican IRS) updated the Special Tax on Production and Services (IEPS/STPS) on gasoline, cigarettes and flavored drinks, to be paid as of January 1st, 2020.
On the Official Journal of the Federation (Diario Oficial de la Federación: DOF), the federal agency said that the new rates will be applied to motor fuels, fossil fuels, gasoline and diesel in all states.
Mexican IRS
It states that the adjustments to quotas will “not necessarily” have an increase in fuel prices, since it will depend on each of the establishments.
On December 9 2019, a decree was published which reforms, adds and repeals various provisions of the Income Tax Law (ISR), the Value Added Tax Law (VAT or IVA in Spanish), the Special Tax on Production and Services Law (IEPS) and the Federal Fiscal Code.
“Modifications were made regarding the octane rating of gasoline to “harmonize” with that established in “NOM-016-CRE-2016,” the ISR explained.
The SAT referred that the quotas applicable to fuels were last updated on December 28, 2018, through the “agreement by which the quotas specified in matters of excerise tax on production and services are updated”.
Thus, according to the updating factor mentioned in the agreement, the consumer must pay $4.95 pesos per liter for Magna gasoline -under 91 octanes-.
Those who use Premium gasoline -more than or equal to 91 octanes- will have to pay $4.18 pesos per liter as of Wednesday, January 1st.
Diesel will also have a new STPS (Special Tax on Production and Services) fee of $5.44 pesos per liter, while in non-fossil fuels the fee was $4.18 pesos per liter.
AMLO´s government will increase taxes in gasolines, cigarettes and softdrinks
In the case of cigarettes, the quota applicable to manufactured tobaccos referred to in the STPS Law, which will be in effect as of January 1st, 2020, is 0.4944 pesos per unit.
Meanwhile, the quota per liter applicable to flavored beverages referred to, in the same legislation, will be $1.2616 pesos per liter as of January.
The Yucatan Times
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