Monterrey, NL. The National Association of Independent Entrepreneurs (ANEI) proposed to the new state government that in order to achieve an efficient tax system there be a six-year financial plan, increase the Payroll Tax (ISN), as well as create a Law that penalizes municipalities that for Political issues do not charge the Property.
Fernando Turner Dávila, founder of the ANEI, and former secretary of State Economy and Labor, commented that “it is calculated that 85% of the income of the states comes from the ISN.”
Currently, the entity charges 3% of ISN, which represents more or less 10,000 million pesos and an increase in collection from 50 to 60%, however, if it were charged 100%, income would increase by 5,000 million pesos annually, stressed Turner Dávila.
The study An Efficient and Equitable Tax System in Mexico, carried out by ANEI in October this year, points out that “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 to 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%.
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, indicates the association’s study.
Likewise, it proposes to incentivize the local tax collection effort through provisions that reward those with greater fiscal pressure with better support.