Tax increase for several items in effect as of January 1st announced by SHCP

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Mexico City, Mexico — The Ministry of Finance and Public Credit (Secretaría de Hacienda y Crédito Público: SHCP) has reported an increase of taxes on specific consumer goods as of January 1st, 2021. At the start of the new year, consumers can expect to pay an average of 3.3 percent more for tobacco, soft drinks, and gas.

The Secretaría de Hacienda y Crédito Público (Mexican IRS) specified that the increases will be placed on tobacco, automotive fuels, flavored beverages, and fossil fuels. The increase is supported by article 17-A of the Federal Tax Code and is part of the agency’s annual adjustment.

The adjustments are based on the special tax on production and services (Impuesto especial sobre producción y servicios – IEPS) that will see the 3.3 percent increase. SHCP says that the IEPS quota on cigarettes will rise from 0.4 pesos to 0.5 pesos per cigarette. Soft drinks and flavored beverages will increase to 1.3 pesos from 1.2 pesos.

For automotive gasoline, the IEPS fee will rise from 4.9 pesos to 5.1 pesos for Magna and from 4.1 to 4.3 pesos per liter. The new prices will take place on January 1, 2021.

Source: 24 Horas

Mexico Daily Post