Background on Edgar Amador Zamora and His Role
Edgar Amador Zamora serves as the Secretary of the Treasury and Public Credit (SHCP) in Mexico. In this crucial position, he is responsible for managing the country’s finances and ensuring tax compliance. His recent statements during a presentation to the Chamber of Deputies highlight his stance on tax reform amidst ongoing challenges in customs fraud and evasion.
The Current State of Customs Fraud and Tax Evasion
Mexico faces significant issues with customs fraud and tax evasion, particularly in the context of “factureras” – companies that issue false invoices to avoid taxes. These practices have become widespread, prompting Amador Zamora’s emphasis on addressing these problems before considering tax modifications.
Amador Zamora’s Stance on Tax Modifications
During his address to the Chamber of Deputies, Amador Zamora stated that any discussion on tax modifications must come after resolving the challenges posed by customs fraud and evasion. He emphasized that the government must first “do its job” before contemplating tax adjustments.
Government’s Proposed Solutions
To tackle these issues, the government has proposed several measures:
- Reform to the Customs Law: Implementing advanced technological systems for enhanced and more efficient tax collection.
- Miscellaneous Fiscal Provisions: Updating taxes on products like tobacco and sugary drinks, as well as introducing an 8% tax on violent video games.
- Amendments to the Federal Fiscal Code (CFF): Granting greater authority to combat factureras, with 11,028 registered entities already on the “black list” as of August.
Tax Revenue and Government Projections
As of mid-year, Mexico’s 50 customs offices have generated 711.93 billion pesos in tax revenue, marking a 23.4% annual growth rate. Customs duties accounted for 25 out of every 100 pesos collected through taxes.
The government aims to collect 5.8 trillion pesos in taxes next year, an increase of 6.5% compared to the current fiscal year’s approved amount. This growth is attributed to a 62% annual increase in importation-related revenue.
Pemex Financial Rescue
Regarding Petróleos Mexicanos (Pemex), Amador Zamora clarified that the government did not cause Pemex’s debt but is working to resolve it, aiming for financial independence by 2027.
Key Questions and Answers
- What is the main issue Edgar Amador Zamora addressed? He emphasized the need to tackle customs fraud and tax evasion before discussing tax modifications.
- What measures has the Mexican government proposed to address these issues? The government plans to reform the Customs Law, introduce Miscellaneous Fiscal Provisions, and amend the Federal Fiscal Code to combat factureras effectively.
- What are the government’s tax revenue projections for the following year? The government aims to collect 5.8 trillion pesos in taxes next year, a 6.5% increase from the current fiscal year’s approved amount.
- What is the government’s plan for Petróleos Mexicanos (Pemex)? The government aims to resolve Pemex’s debt and achieve financial independence by 2027.
