Starting January 1, 2021, Value Added Tax (VAT), Income Tax (ISR) and gasoline will be reduced in Mexico's southern border communities to boost the regional economy.
Free book preview Tax and legal playbook
Get breakthrough solutions to your small business questions.
2 min read
This article was translated from our Spanish edition using AI technologies. Errors can occur due to this process.
At the morning conference this Friday, President Andrés Manuel López Obrador decided to cut VAT, ISR and gasoline prices on the country's southern border. The communities of Campeche, Tabasco, Chiapas and Quintana Roo will benefit.
The president announced that income tax would be cut to 20 percent, sales tax would be cut by half to eight percent, and fuel prices would be homologated. Gasoline in states like Chihuahua like Coahuila costs four or even five pesos less than the rest of the country.
Also in his conference, the president mentioned that the decree of the Northern Border Free Zone will be extended until the end of 2024.
The strategy for economic reactivation on the two borders of Mexico consists of four decrees
The extension of the validity of the stimulus decree on the northern border. The decree on fiscal incentives on the southern border. The decree promoting the special tax on production and services (IEPS) for gasoline on the southern border. The decree on tariff advantages in the Chetumal Free Zone in Quintana Roo.
The Minister of Finance and Public Loans, Arturo Herrera, made it clear that there are 22 border communities with Guatemala, Chiapas, Tabasco and Campeche, as well as the border with Quintana Roo, that benefit.
Chetumal in Quintanaroo will be a free zone again, ie free of import taxes, the president made clear.
To know more: Do you sell online? These are the taxes that you will have to pay from June