Mexico needs increased tax collection 25 percent - It currently represents 16% of GDP, of the lowest in the OECD; the increase would mean a growth in tax revenue of 4%.
Tax revenues represent 16% of GDP, the lowest percentage within the Organization for Economic Cooperation and Development (OECD).
Raquel Buenrostro, designated by President Andrés Manuel López Obrador as the next head of the Tax Administration Service (SAT), said that it is necessary to increase tax collection by 25% to match the levels of Chile.
During his appearance before legislators, Buenrostro explained that currently the collection of taxes represents 16% of the Gross Domestic Product (GDP), the lowest level within the OECD countries, where the average is 34 percent.
Mexico needs increased tax collection 25 percent
“If we take into account subnational taxes, social security contributions, the percentage of tax revenues in proportion to GDP, is only 16%, while in Chile it is 20%, and in Argentina, Brazil and Uruguay, of about 30%, ”he told the Third Working Commission of the Permanent Commission.
In this regard, he said that there is enough room for improvement in the collection without the need for fiscal reform, at this time. "The mere fact of increasing the collection to a percentage similar to that of Chile would mean a growth in tax revenues of 4% of Mexico's GDP, that is, 25% more than what is currently collected."
When questioned about the implementation of a tax reform, the former official of the Ministry of Finance indicated that the collection efficiency of the SAT must first be improved.
“At this time, there is no need or objective in the SAT agenda to implement any tax reform. Before thinking about a reform, we will have to be more efficient in the framework of current legislation. ”
He also promised that there will be no new or more taxes, something the President of the Republic has repeatedly said.
"The SAT seeks to do its homework with the sole purpose of helping to have more budget to implement and comply with the social justice programs that the people of Mexico demand so much."
Raquel Buenrostro would be the third woman in charge of the SAT in history. The designation is expected to be ratified today.
Instant invoice is reviewed
Lawmakers questioned Buenrostro regarding the instant bill, a facility that was presented in conjunction with the Association of Banks of Mexico last November and has generated several criticisms.
"At the SAT we will value your convenience, because it was not an initiative of the government but of the banks."
He said there is no law or legal requirement that requires the instant invoice, so it is optional. Besides being just a proposal.
“That proposal comes from outside the SAT. It is aimed at informality. Now you have to see, natural persons are 20% of the taxpayer list; however, they represent 3% of the collection. So, this measure has a potential of 3%, ”he said.
He said that an internal exercise is exercised to assess the real impact of this measure.
He added that, if the measure is technologically expensive and for the public, it would have to be valued and studied better before implementing it.
There is not and there will be no fiscal terrorism
On the other hand, Buenrostro said that the Treasury will never undertake fiscal terrorism, since what it seeks is to help and make life easier for taxpayers to meet their tax obligations.
“The SAT is an institution that is to serve citizens, not to persecute it. It is not our intention that they perceive us as enemies, ”he told the Third Working Commission of the Permanent Commission.
He added that the collection body does not go for taxpayers, much less for those of "middle and popular classes", or for businessmen who, he said, help create jobs and contribute to the government coffers.
How to increase tax collection in Mexico?
Raquel Buenrostro said that the SAT will follow three lines to improve the efficiency of obtaining resources:
- Increase collection efficiency
- Lower tax evasion and avoidance
- Fight corruption