(Mexico – Sectretaría de Hacienda) – The Ministry of Finance cut the tax stimulus on gasoline and diesel; this measure will be applied from December 18 to 24.

The fiscal stimulus to the Special Tax on Production and Services (IEPS) on Magna and Premium gasoline, as well as diesel, presented a reduction, so as of this Saturday, drivers will pay more in taxes for these fuels, informed the Ministry of Finance and Public Credit (SHCP).

What is the IEPS?
It is the tax paid on the production and sale or import of gasoline, alcohol, beer, and tobacco, among other goods mainly. Like VAT, it is an indirect tax since taxpayers do not pay it directly but instead transfer it or charge it to their customers (except for imports), and the taxpayer only reports it to the SAT.

According to what was published in the Official Gazette of the Federation (DOF), this measure will apply from December 18 to December 24, 2021. Gasoline under 91 octanes (Magna): a tax of 2.6 pesos per liter will be paid because the stimulus decreased to 47.3 percent, from 58.6 percent assigned last week. Gasoline was more significant than or equal to 91 octane (Premium); a fee of 3.6 pesos will be paid due to applying a 16.25 percent stimulus, concerning the 31.8 percent of the previous week.

Diesel: a tax of 3.7 pesos per liter will be paid due to a 32.5 percent stimulus, compared to 40 percent last week.

The Yucatan Times