Coparmex asks the Government to avoid ‘fiscal extortion’ of companies • Economy and finance • Forbes México

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The Employers’ Confederation of the Mexican Republic (Coparmex) this Monday demanded that the Government avoid “fiscal extortion” of companies, especially micro, small and medium-sized enterprises (MSMEs).

The request occurs within the framework of the approval of the next Economic Package for 2025 in Congress, which includes the perspective of government income, expenses, taxes and rights, as well as in President Claudia Sheinbaum’s narrative of greater oversight and prosecution of tax evasion.

“Now we know that there were companies that had taxes forgiven and how good it is that each company pays its fair share (of taxes today). “What we don’t want is for this to become tax extortion,” he said.

In this framework, the Government aims for historic revenues for 2025 in the order of 9.3 trillion pesos, equivalent to 15% of GDP.

Read: Reforms have elements that differ from what was signed in the TMEC: Coparmex

Although Coparmex recognized that the next package does not add or increase tax burdens, it contrasted that localities and states in the country have undertaken “disproportionate increases in taxes, duties and licenses,” which puts business operations at risk and affects investment. .

José Medina Mora, outgoing president of Coparmex, explained that these distortions occur when local authorities seek to compensate for budget deficits by arbitrarily increasing the economic burdens for companies.

He highlighted that these new impositions are “completely disproportionate” and pointed out that the phenomenon can be seen throughout the territory, while new taxes are created, such as the so-called ecological ones, which he said are paid at “the expense of companies.”

“It seems to us that it is not the way to simply try to extract more resources from companies,” he denounced, while pointing out this reason as one of the causes of companies closing or moving to other places and even migrating to the informality.

The business leader highlighted that this situation is worsening in cities, municipalities and states with lower federal income, such as Matamoros, Reynosa and Veracruz, and also pointed out irregular practices in the management of taxes and state trusts, such as in Guanajuato and Yucatán, where resources intended for specific projects have been redirected without consultation with the entrepreneurs who contribute to them.

Read: Economic losses due to violence in Sinaloa exceed 18,000 million pesos: Coparmex

In this sense, Coparmex urged the Government to establish a clear and equitable framework for tax collection that does not affect companies.

They ask for regulatory improvement that eliminates excessive bureaucracy

Juan José Sierra, who will assume the presidency of Coparmex as of January 1, 2025, emphasized the need for a regulatory improvement that eliminates excessive bureaucracy and promotes the digitalization of procedures.

This, he assured, could significantly reduce opportunities for corruption and extortion, while positioning himself in favor of eradicating any possible tax extortion, as well as evasion of paying taxes by companies.

In addition to preventing tax extortion, Coparmex highlighted the opportunity to promote a fiscal policy that encourages formality, in a country where 54% of the economy operates informally.

Finally, the confederation stressed that collaboration between the private sector and authorities will be key to overcoming these challenges and taking advantage of economic development opportunities in an equitable and sustainable manner.

With information from EFE

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