Mérida, Yucatán, (April 15, 2021).- The Parliamentary Group of Morena proposed in the Chamber of Representatives to impose a 7 percent tax on streaming platforms such as Netflix, Disney Plus, and Apple TV, among others.
It was the Morena representative Celeste Ascencio Ortega who presented the initiative to modify the Law of the Special Tax on Production and Services, on Tuesday, April 13th, the proposal was published in the Parliamentary Gazette.
According to Ortega, the initiative aims to “tax a growing source of wealth in order to expand and diversify the sources of income for the State.”
Therefore, the representative of Morena proposes a 7 percent tax on the consumption of audiovisual content from Over to Top (OTT) or streaming companies, of which Netflix is the leader in México and the world, but would also affect users of Prime Video and other platforms.
The initiative seeks that the tax is collected automatically
Likewise, the initiative of the Morena legislator adds that the objective of this modification to the law is so that there is a domicile for these companies. In “where they can present complaints and claims for the services they consume.” However, if foreign streaming companies do not have an establishment in Mexico, they must pay a 15% rate.
In the same way, to ensure payment of the tax, the initiative states that all banks that issue credit and debit cards would have to automatically withhold this 7%.
“Currently, there is a trend in the world in the sense of imposing regulations and taxes on large technology platforms. Like OTTs ”, Ortega’s initiative points out.
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