Introduction to the Mexican Tax Reform Proposal
The Mexican Secretaría de Hacienda y Crédito Público (SHCP) has proposed new tariff increases to the Congress of the Union, aiming to boost tax revenue from imports by 40.7% in 2026.
Details of the Tariff Proposal
The SHCP plans to impose tariffs ranging from 10% to 50%, averaging at 16.8%, on various product fractions imported from countries without existing trade agreements.
- Affected industries include automotive, textile, clothing, plastics, steel, home appliances, aluminum, toys, furniture, footwear, leather goods, paper and cardboard, motorcycles, trailers, glass, among others.
- The proposed tariffs will increase the contribution of import-related taxes from an estimated 181,100 million pesos in 2025 to 254,800 million pesos in 2026.
- As a result, the proportion of import-related taxes in total tax revenue will rise from 3.3% in 2025 to 4.4% in 2026.
Projected Total Tax Revenue and Growth
According to the SHCP, total tax revenue in 2026 is projected to reach 5,838,600 million pesos, demonstrating a real growth of 5.7% compared to the estimated close for 2025.
- The growth in tax revenue is primarily attributed to a 40.7% real increase in import components.
- Additional factors include a 2.5% real annual growth in income tax (ISR) and a 3.6% real annual growth in value-added tax (IVA).
Compared to the projected income in the Federal Tax Law 2025, total tax revenue is expected to exceed by 357,100 million pesos (6.5% real annual growth). Excluding the IEPS (excise tax on fuels), total tax revenue will amount to 5,365,300 million pesos, reflecting a real annual growth of 5.8% due to various anticipated fiscal measures for the following year.
Scope and Implementation of New Tariffs
The new tariffs will apply to 1,371 out of the total 8,177 product fractions in Mexico’s Tariff of the General Tax Law on Imports and Exports (TIGIE).
- The decree for these new tariffs will take effect 30 days after publication in the Diario Oficial de la Federación (DOF).
- The tariff changes will remain in force until December 31, 2026.
Key Questions and Answers
- What is the main goal of the SHCP’s proposal? The primary objective is to increase tax revenue from imports by 40.7% in 2026.
- Which industries will be affected by the new tariffs? The proposed tariffs will impact various sectors, including automotive, textile, clothing, plastics, steel, home appliances, aluminum, toys, furniture, footwear, leather goods, paper and cardboard, motorcycles, trailers, and glass.
- What is the projected growth in total tax revenue for 2026? The SHCP anticipates a real growth of 5.7% in total tax revenue, amounting to 5,838,600 million pesos.
- When will the new tariffs take effect? The new tariffs will enter into force 30 days after publication in the Diario Oficial de la Federación (DOF) and will remain valid until December 31, 2026.
