In the Headlines
November 24, 2020

Should Mexico Follow the IMF’s Advice on Taxes?

Latin America Advisor, The Dialogue

Senior Counsel Eugenio Grageda spoke with the Latin America Advisor, a publication of The Dialogue, about whether Mexico should follow the International Monetary Fund's (IMF) advice to broaden the country’s tax base and raise state or local taxes. IMF argued that Mexico should carry out tax reforms after its economy recovers from the downturn brought by the COVID-19 pandemic.

“Even though tax collections are at an all-time high, Mexico’s current economic situation calls for the implementation of short term tax incentives as opposed to escalations in tax rates," Mr. Grageda commented. "A tax reform that increases sources of revenue and broadens the tax base is indeed necessary, especially if it accomplishes this without creating disincentive effects in the economy."

READ: Should Mexico Follow the IMF’s Advice on Taxes?

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