Introduction
In Mexico, small and medium-sized enterprises (SMEs) are crucial for job creation, yet they face significant challenges such as a growing informal economy and rampant delinquency. Prominent business leaders, including Ricardo Salinas Pliego and Esperanza Ortega, have called for urgent measures to ensure legal certainty and stability through the business sector.
The Need for a Dedicated Tax Regime for SMEs
A dedicated tax regime for SMEs is essential to curb the expanding informal economy, which has reached record highs. This regime would streamline monthly revenue and expense tracking while offering tax deduction benefits for payroll and credit schemes tailored to their size. However, this proposal remains unaddressed.
Current Challenges Faced by SMEs
- High levels of extortion affecting thousands of businesses nationwide, as stated by Coparmex’s president, Juan José Sierra.
- In the first half of 2025, Mexico reported 5,887 extortion victims, an 83% increase from a decade ago.
- Only 3% of extortion cases are reported due to lack of trust in authorities and fear of retaliation.
Delinquency and Extortion: A Growing Concern
Extortion is not only perpetrated by organized crime but also occurs in certain municipalities and states. Business leaders urge the legislative and executive branches to address extortion as a major crime, implementing strategies to curtail or eliminate this insecurity hindering job development.
Case Study: Time Ceramics and Water Concessions in Hidalgo
Time Ceramics, an Asian firm, is willing to pay any price for two water concessions in Hidalgo state. The company has been illegally extracting water from the former San Lorenzo Hacienda, along with other wells in Sahagún and Apan valley. A federal decree protects the agricultural land use, but Time Ceramics continues its activities.
Legal Action Against Time Ceramics
On October 28, a judge acknowledged the amparo lawsuit filed by Gumaro Zamorano, alleging violation of agricultural land use by Time Ceramics. Despite the existing denunciation, it remains uncertain if any action will be taken.
Key Questions and Answers
- What is the main issue? The pressing need for legal certainty and stability through measures addressing the informal economy, delinquency, and extortion affecting SMEs.
- What is a proposed solution? A dedicated tax regime for SMEs, addressing monthly revenue and expense tracking, payroll deduction benefits, and tailored credit schemes.
- Why is delinquency a concern? Extortion affects thousands of businesses, with only 3% of cases reported due to lack of trust in authorities and fear of retaliation.
- What is the Time Ceramics case about? An Asian firm illegally extracting water from protected agricultural land in Hidalgo state, despite a federal decree and an existing denunciation.
