Mexico’s Import Duty Revenue Surges 19% Annually, Exceeding Targets by 16 Billion Pesos

Background on the Secretaría de Hacienda y Crédito Público (SHCP)

The Secretaría de Hacienda y Crédito Público (SHCP) is Mexico’s finance ministry, responsible for managing the country’s public finances. Under its leadership, Édgar Amador Zamora, the SHCP has reported significant growth in tax revenue, including a 19% annual increase in import duty collections.

Import Duty Revenue Growth

According to the November Public Finance and Public Debt Report, the revenue from import duties reached 115.5 billion pesos, surpassing the targeted amount by 16 billion pesos. This growth can be attributed to enhanced customs surveillance, the implementation of a low-value goods regime, and adjustments to the tariff scheme for countries without active trade agreements with Mexico.

• Import Duty Revenue Growth Details:
• Import duty revenue grew by 19% annually, exceeding the average real growth rate of the last decade (10.9%).
• The revenue growth was driven by stronger customs oversight, the application of low-value goods regime, and tariff adjustments for countries without existing trade agreements with Mexico.
• Other Tax Revenue Growth:
• The revenue from the Income Tax (ISR) grew by 5.4% annually.
• The Special Production and Service Tax (IEPS) increased by 4%.
• The Value-Added Tax (IVA) revenue grew by 1.3%.
• Total Tax Revenue:
• Combined tax revenues amounted to 4.9 trillion pesos, marking a 4.6% annual increase.
• This growth was attributed to the expansion of the taxable base, combating smuggling, and integrating digital tools into administrative and fiscal processes.

Support for Pemex Reverses Petroleum Income Decline

On the income side, government support for Petróleos Mexicanos (Pemex) has reversed the decline in petroleum income. Between January and November, income from oil sales totaled 1.711 trillion pesos with support, marking a 15.8% annual increase.

However, excluding debt issuance and bond repurchases by Pemex, oil income amounted to 817.3 billion pesos, a 11.6% annual decrease and 206.1 billion pesos below the program.

In September, the government announced a 13.8 billion dollar debt issuance and a 12 billion dollar Pemex bond repurchase as part of the 2025-2030 Strategic Plan. These supports are considered government expenditure but counted as Pemex income.

According to Hacienda’s data, oil was sold at 62.2 dollars per barrel, surpassing the projected 58.9 dollars, while the production platform averaged 1.72 million barrels per day, 8.7% below the planned rate.

Consequently, total public income between January and November reached 7.47 trillion pesos, a 5.9% annual increase. Excluding Pemex support, income grew by 2.3%.

Key Questions and Answers

• What is the SHCP?

The Secretaría de Hacienda y Crédito Público (SHCP) is Mexico’s finance ministry, responsible for managing the country’s public finances.

• Why did import duty revenue grow by 19% annually?

The growth was due to enhanced customs oversight, the implementation of a low-value goods regime, and tariff adjustments for countries without existing trade agreements with Mexico.

• How did other tax revenues perform?

The Income Tax (ISR) grew by 5.4% annually, the Special Production and Service Tax (IEPS) increased by 4%, and the Value-Added Tax (IVA) revenue grew by 1.3%.

• What reversed the decline in petroleum income?

Government support for Petróleos Mexicanos (Pemex) reversed the decline in petroleum income, though this growth included debt issuance and bond repurchases that are not part of actual oil income.