Background and Key Players
On October 9, 2025, Mexico’s Supreme Court will face a significant decision regarding the constitutionality of a controversial tax on digital platforms. The case revolves around a 2% tax imposed by Claudia Sheinbaum, former Head of Government of Mexico City, on digital platforms such as Uber Eats, Rappi, Didi Food, and DiDi. The tax aims to charge these platforms for their extensive use of the city’s road and urban infrastructure.
The Tax Controversy
Sheinbaum’s administration argued that this was a legitimate “aprovechamiento” (utilization charge) rather than an outright tax. However, the Supreme Court ruled in June 2025 that it was an unconstitutional tax disguised as a charge, infringing on federal competencies. Despite this ruling, the City of Mexico government, led by Clara Brugada, has not removed the charge, but its implementation is currently suspended.
Arguments For and Against the Tax
The City of Mexico government based its case on three main points: compensation for public infrastructure use, equitable taxation, and revenue generation for public services. Meanwhile, digital platforms, business associations, independent delivery workers, and opposition legislators argued that the tax was unconstitutional, led to double taxation, negatively impacted users and local economy, and lacked proportionality and effectiveness.
The Alliance In Mexico’s Stance
The Alianza In México, an alliance of tech companies including Cabify, DiDi, Rappi, Uber, Lalamove, and Mensajeros Urbanos, urges the Supreme Court to reject the 2% tax on digital platforms. They warn that upholding this tax would adversely affect hundreds of thousands of families relying on these platforms for self-employment, create an unfair tax treatment compared to similar service providers, and potentially jeopardize Mexico’s international trade commitments, especially those under the Tratado entre México, Estados Unidos y Canadá (T-MEC).
Economic Impact
The digital economy is crucial for Mexico’s growth and development, providing innovative and inclusive opportunities through technology. A tax like the one proposed in Mexico City’s fiscal code would act as a barrier to growth and discourage innovation, with potential ripple effects across other federal entities.
Key Questions and Answers
- What is the tax controversy about? The dispute centers on whether a 2% tax imposed by Mexico City on digital platforms like Uber Eats and Rappi constitutes a legitimate utilization charge or an unconstitutional tax.
- Why is the Alianza In México against this tax? The alliance argues that the tax would negatively impact self-employed individuals, create unfair competition among service providers, and possibly violate Mexico’s international trade agreements.
- What are the broader economic implications? The tax could hinder the growth of Mexico’s digital economy, discourage innovation, and negatively affect related industries such as small and medium businesses and consumers who rely on these digital services.
