In the Headlines
April 7, 2022

Foreigners "Take Advantage" of Fuel Tax Incentives


Tax attorney Mario Barrera was interviewed by El CEO about how United States car owners who live near the Mexican border take advantage of the three fiscal stimuli the Mexican government applies to gasoline to control its price increase. The country's Ministry of Finance decided to remove the tax incentives and subsidies it offered for fuel on April 1 to avoid motivating foreign vehicle owners to fill their tanks in Mexican territory. However, on the fourth day, the ministry rectified its decision and returned the subsidy to all areas except Tijuana and Playas del Rosarito in Baja California. Mr. Barrera believes that if the tax incentives are solely for the benefit of Mexicans, the identity and immigration status of consumers should be verified.

"Gas stations would have to keep track of who it sells gas to, but that would generate a very large administrative burden," he said.

READ: Foreigners "Take Advantage" of Fuel Tax Incentives

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