The Public Finance Studies Center (CEFP) calculated that Mexican remittances pay more than 10,378 million dollars to value added tax.
“Considering that a million 700 thousand families receive remittances multiplied by the annualized data of VAT payment, it is estimated that the VAT collection associated with these families would amount to 10,378 million pesos,” he said.
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According to the agency, remittances directly provide 0.8 percent of the total collection of value added tax
“Although it is important to emphasize that this data does not consider the indirect VAT of the associated economic spill,” he said.
Its importance is such that what these families contribute to collection is equivalent to 38.4 percent of the approved budget or similar to 15.6 percent of the estimated health budget by 2025, he explains.
Remittances are the sending of money from those people who lie in another nation to their country of origin, which can also be in kind, although less common, says CEFP.
An example is the shipments of money (generally in dollars) made by people of Mexican origin who settle and work in the United States and Canada, which are aimed at their families in Mexico for their subsistence, precise.
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Only one million 716 thousand 276 families report reasons: “Its quarterly average income, derived from remittances is 14 thousand 455 pesos, which represented, on average, 27.5 percent of its total income for 2022”.
Between 2019 and 2024, remittances sent to Mexico went from 37 thousand 250.5 million dollars to 64 thousand 746.4 million dollars
“Although only 1.7 million families (4.6% of the national total) report reasons, these represent 27.5 percent of their average quarterly income,” said the CEFP.
Remittances support family consumption in low -income contexts, and their beneficiaries record an average quarterly expense of 35 thousand 535 pesos, close to that of non -receiving families (39 thousand 964 pesos): “That indicates their role as compensatory mechanism of insufficient internal income.”
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In addition to their social weight, remittances have a direct impact on tax collection. “Receiving families generate a tax burden on the national average by paying an effective VAT of 4.3 percent, compared to 2.8 percent of those who do not receive remittances.”
“This occurs because remittance induced spending is concentrated in taxed goods and services. Therefore, remittances should not be seen only as family support but also as a source of income, although this is not very significant,” the CEFP concluded.
