Fiscal reform coming to Mexico in 2022

Mexico’s finance minister Arturo Herrera said on Thursday, May 20th, a tax reform should be implemented in 2022.

“If a tax reform is proposed in September, it would be to take effect in 2022,” he told veteran Mexican broadcaster Joaquin Lopez-Doriga.

In mid-March, the official told Reuters that the government was holding talks with the country’s regional authorities about its fiscal needs to help decide on whether or not there are conditions to carry out tax changes.

“What you have to do is discuss, tax reforms have many elements, one can be tax facilitation. In any case, if the tax reform is proposed in September, it will come into effect in 2022, ”Herrera said in an interview with the Radio Fórmula network.

President Andrés Manuel López Obrador has promised not to increase taxes, or create new ones, during the first three years of his administration, which began in 2018 and will culminate in 2024.

Follow the information about business and current affairs in Forbes Mexico

Herrera stressed the need to make a “deep reflection” on whether current income levels are what the nation requires in the medium term.

The Mexican economy was hit hard last year by the blows of the Covid-19 pandemic and fell by 8.5% at an annual rate, although the Government foresees a rebound in the Gross Domestic Product (GDP) of 5.3% at the end of 2021.

When asked when he estimates that economic activity will regain its pre-epidemic levels, Herrera said that this year “we are going to recover about 60% of what we lost,” in anticipation of a better GDP performance while vaccination advances. of the population.

Source: Radio Formula