It Costs 27 Times More to Mitigate the Rise in Gasoline Prices
Tax attorney Mario Barrera was interviewed by Reforma about the fiscal stimulus to Mexico's Special Tax on Production and Services (IEPS) applicable to fuels. This stimulus is defined based on international prices such that when these prices rise, the Mexican government increases the stimulus and thus absorbs part of the price increase imposed on taxpayers. Mr. Barrera pointed out that the stimulus represents a significant revenue loss for the country.
"Naturally this stimulus brings an enormous revenue loss because the it is the government that ends up subsidizing these increases in gas prices," he said.