ANEI proposes to the government of Nuevo León to carry out a six-year financial plan that includes greater collection

Monterrey, NL. The National Association of Independent Entrepreneurs (ANEI) proposed to the new state government that in order to achieve an efficient tax system in Nuevo León, there be a six-year financial plan, increase the Payroll tax (ISN), as well as the creation of a Law that penalizes municipalities that for political reasons, do not charge the Property tax.

Fernando Turner Davila, founder of the Ana, and former Secretary of State Economy and Labor, commented at a press conference: “in New Lion We are left behind, if you increase the ISN and go to an efficient transportation plan, people would applaud it. It is estimated that 85% of the state’s income comes from the ISN ”.

Currently in the entity 3% of ISN is charged, which represents more or less 10,000 million pesos and the collection has increased from 50 to 60%, however, if 100% were charged, the income would increase by 5,000 million of pesos annually, stressed Turner Dávila.

In the study An Efficient and Equitable Tax System in Mexico, which ANEI carried out in October of this year, points out: “there is a lot of fiscal space to increase subnational collection and any tax reform must prioritize state and municipal revenues. We could and should double, or even triple, state revenues and triple municipal revenues from taxes. “

He explains that on average, the states only collect 6 of the 18 taxes that they could collect, therefore, the states should increase their fiscal effort and by doing so they could reduce their dependence on the federation.

“It is unacceptable to maintain a system where federal transfers, both participations and contributions, discourage state collection,” said Turner Dávila.

The income of subnational entities is much lower in Mexico than in the countries of the Organization for Economic Cooperation and Development (OECD) and in the United States. In the OECD they represent 9.7% of GDP, in the American Union 8.8% and in Mexico 1% of GDP.

This situation could be reversed with a tax reform that increases state and municipal revenues, which would be timely, considering the determination to raise or create federal taxes, the study indicates.

It proposes that the local tax collection effort be incentivized through provisions that reward those with greater fiscal pressure with better support.

“As part of this strategy, the mandatory updating of municipal cadastres and their automatic inflationary updating could be established. In addition, establish in state legislation the political and criminal penalties for negligence in collecting in accordance with state and municipal powers, ”the ANEI analysis states.