Overview of the Reforms
The Mexican Senate’s committees have approved amendments to the Federal Rights Law, the IEPS (Impuesto Especial sobre Producción y Servicios) Law, and the Federal Tax Code (CFF). These reforms include taxes on violent video games, light beverages, increased museum ticket prices, and higher migratory procedure fees. The approvals were made with 21 votes in favor, eight against, and zero abstentions for the Federal Tax Code, 20 votes in favor and eight against for the Federal Rights Law, and 20 votes in favor with eight against for the IEPS Law modifications.
Key Figures and Their Stances
Miguel Ángel Yunes, a Morenist senator, stated that these reforms aim to strengthen the tax system, protect public health, encourage investment, and establish a certainty and legality environment. However, the opposition criticized these reforms for alleged abuses, increased debt, and economic impact on lower-income families.
Controversy Surrounding IEPS
During the discussion, Senator Luis Donaldo Colosio from Movimiento Ciudadano criticized the 8% IEPS on what he called “violent taxes,” describing it as a “desperate cry” for more revenue. He called this tax “absurd,” lacking scientific backing and serving only as a revenue-generating measure that could lead to unwarranted control over citizens’ consumption choices and potentially infringe on freedom of expression and personal autonomy.
Opposition senators also expressed concerns about the impact of increased taxes on sugary drinks, which would raise prices for lower-income consumers. Cristina Ruíz Sandoval, a Priísta senator, stated that these reforms are merely revenue-generating and not development-focused, effectively taking more from the people and returning less for public services.
Other Modifications
Besides the proposed amendments to the IEPS regarding sugary drinks, increasing taxes on gambling activities by 30-50%, and updating tobacco taxation, the senators approved fiscal and rights law reforms.
- The CFF grants more authority to tax authorities to intensify the fight against “factureras,” companies that issue false fiscal receipts for non-existent transactions.
- A unified retention rate is established for digital platforms, and credit uncollectible reductions are harmonized between financial institutions and other taxpayers.
- The tax authority can now deny RFC (Registro Federal de Contribuyentes) registration to moral persons if any of their partners or representatives are linked to false billing practices.
Federal Rights Law Adjustments
Under the Federal Rights Law, fees for certain public services will increase, including museum, archaeological site, and INAH (Instituto Nacional de Antropología e Historia) entrance fees. Additionally, migratory service fees will see adjustments of up to 100% for visitors without work permits, temporary and permanent residents. A 50% discount will be applied to humanitarian cases such as family reunification, job offers, or cultural invitations.
