Federal Government announces reduction of ISR, VAT and gasoline in the following states
As of January 1, 2021, the Value Added Tax (VAT), Income Tax (ISR) and gasoline will be lowered in the southern border municipalities of Mexico in order to boost the regional economy.
This Friday at the morning conference, President Andrés Manuel López Obrador decreed to reduce VAT, ISR and gasoline prices on the southern border of the country, the municipalities of Campeche, Tabasco, Chiapas and Quintana Roo will benefit.
The president announced that the Income Tax is reduced to 20 percent, the Value Added Tax is lowered by half, to eight percent, fuel prices are homologated. Gasoline in states like Chihuahua, like Coahuila, costs four or even five pesos less than what it costs in 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 in the two borders of Mexico involves four decrees
- The extension of the validity of the stimulus decree on the northern border.
- The decree of fiscal stimuli on the southern border.
- The decree to stimulate the Special Tax on Production and Services (IEPS) for gasoline on the southern border.
- The decree of tariff benefits in the Chetumal free zone, in Quintana Roo.
The Secretary of Finance and Public Credit, Arturo Herrera, clarified that there are 22 border municipalities with Guatemala, Chiapas, Tabasco and Campeche, as well as the Quintana Roo border, which benefit.
Chetumal, in Quintanaroo, will once again be a free zone, that is to say, free of import taxes, the president clarified.