The fight against informality is one of the keys to increasing the country’s tax revenue, said Virginia Ríos, members of the College of Public Accountants of Mexico (CCPM).
“The incorporation of the informal economy into the formal economy should be one of the administration’s priorities,” he said in an interview.
This would benefit the government’s coffers, since nearly 60% of economic activity is informal.
He pointed out that although informality contributes indirectly to collection, income through this means could more than increase if it is taken into account.
Asked if Mexico needs a tax reform, the accountant said that the country requires tax changes, such as the one mentioned, however, she pointed out that the ISR and VAT rates need to be fairer, both for legal entities and individuals.
“The rates that people who earn the minimum pay today are very high,” he said, emphasizing that they are the same rates for people who earn more income.
In recent days, both President Claudia Sheinbaum and Federal Representative Ricardo Monreal opened the door to a possible tax reform in Mexico to increase public income. However, the president indicated that it would be studied for next year, since there are still other opportunities to generate income.
According to Sheinbaum, the digitalization of processes and procedures can generate more income without the need for tax reform.
Virginia Ríos said that Mexico has been digitizing its procedures for years and that income has not necessarily increased “to a large extent,” and pointed out that the SAT implemented digital annual returns for a long time to facilitate the payment of taxes.
“People need to be taught to file their declaration and know the benefits of paying taxes, so their payment can be increased,” he commented.
Lee: Proposal to reduce the budget deficit is a ‘good sign’, says the IMEF
More income will depend on growth forecast
For 2025, the Treasury proposes 8.05 trillion pesos, a figure that exceeds the estimate for the end of this year by 572.4 billion pesos, according to the Economic Package and the Center for Economic Studies of the Private Sector (CEESP).
“This is equivalent to an increase of 3.3% in real terms, which significantly improves the increase of only 0.6%, which was preliminarily proposed in the 2025 Precriteria Document,” the agency highlighted.
The center explained that this is due to a 3% increase in tax revenues, which derives from an advance equivalent to 365.3 billion pesos more than the estimated figure for the current year.
“The authorities consider that this will respond to a greater dynamism in economic activity estimated for the following year and the effects of the measures to encourage greater compliance by taxpayers and combat tax fraud,” said the private organization.
However, the CEESP emphasized that it will be achieved as long as the official economic growth forecast for next year, which ranges from 2 to 3%, is met.
“If the official scenario is not met, the risk that exists of not meeting income goals is evident,” he warned.
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