In the Headlines
December 9, 2021
Due to Inflation, Consumption Affects Collection
El Heraldo de México
Tax attorney Mario Barrera commented for El Heraldo de México about the 9.6 percent drop in internal collection through the Value-Added Tax (VAT). The VAT is a tax that helps assess consumer activity, and throughout this year, registered revenue has has been even weaker than when the pandemic began. Mr. Barrera indicated that this represents the lack of purchases in the Mexican market, which affects VAT collection.
"We are seeing an economic slowdown and the taxes associated with the purchase operations of Mexicans reflect it. We have an inflation of more than 7 percent, and that implies less purchases and therefore less VAT collection," he detailed.