Government of Jalisco and IP will manage ISN increase

Guadalajara, Jal. To define the destination that will be given to the additional 800 million pesos that the state government will capture with the increase in the Payroll Tax (ISN), in Jalisco the Trust for Educational Infrastructure will be created, whose members will be, in majority, from the private sector .

The Secretary of Public Finance, Juan Partida Morales, explained that in the trust that will administer the resource, there will be six spaces for representatives of business organizations and five for state government officials.

“In the modification of the Finance Law, there is talk of some business leaders such as the Chamber of Commerce, the Council of Industrial Chambers of Jalisco, Coparmex and the Chamber of the Construction Industry,” said the official.

He added that there are two additional seats to be defined; meanwhile, on behalf of the state government, the ministries of Education, Finance and Infrastructure will participate, as well as the Social Development coordinator and the state governor.

According to the 2022 Income Law project that is under analysis in the Legislative Branch, the increase in the ISN tax rate, which is currently 2%, will be gradual until reaching 3% in 2023, and the additional resource It will be allocated to educational infrastructure.

According to the proposal, in the first and second quarters of 2022 the rate will increase 0.125% respectively, and at the end of the year it will increase another 0.25%. Meanwhile, in 2023 the rate will grow another half a percentage point (0.25% in each semester) until it reaches 3% at the end of next year.

The Secretary of Public Finance indicated that, among the mechanisms to make the management of resources transparent, the committee sessions will be “as transparent as possible” and will have requirements to present periodic reports.

The state official indicated that in Jalisco there are 7,500 schools that need to be intervened, both in the maintenance of their infrastructure and in equipment, so the resource obtained through the increase in the ISN rate will be allocated to those items, although the construction of new schools is not ruled out.

Contributions

To complete the resource that will be invested in the educational infrastructure, in addition to the increase in the ISN that will be paid by the employer sector, the state government will participate with 50% of the contributions made by the trust.

That is, if the resource captured by the tax increase amounts to 800 million pesos, the government of Jalisco will contribute 400 million.

According to the local Coparmex president, Carlos Villaseñor, the recovery of the educational infrastructure is a first phase; later, with these resources, health, productive training and safety issues will be addressed, “with the aim of continuing to be a highly competitive state.”