The collection obtained by the government for the payment of the Value Added Tax (VAT) presented, from January to October of this year, its highest growth in seven years, according to data released by the Ministry of Finance and Public Credit (SHCP).
The Report on Public Finances and Public Debt reported that VAT – a tax that is related to consumption – left income to the public treasury for 943,054 million pesos, which meant an increase of 11.5% compared to the same period last year.
In this way, the VAT recorded its highest growth rate, for the same period, since 2014, when income from this tax increased by 16.3% annually.
Import taxes also showed significant growth, after last year they were negatively impacted by restrictions to contain Covid-19. From January to October they left 60,148 million pesos, 18.5% more compared to last year.
Meanwhile, the Income tax (ISR), the government’s main source of income, left just over 1.5 trillion pesos in the period, just 0.1% more annually.
In contrast, the Special Tax on Production and Services (IEPS) left a collection of 343.108 million pesos, 14.5% less compared to January to October 2020. This is due to the 24.6% annual drop in the IEPS to gasoline, since in view of the increase in the price of oil, the SHCP has granted fiscal incentives so that the price to the consumer does not present large increases.
In total, tax revenue They left the treasury a collection of just over 2.9 billion pesos from January to October, 1.6% more than last year, while 776.621 million pesos were collected from oil revenues, 64.3% more annually due to the recovery in the price of oil.
“At the end of October, tax revenues showed a real annual growth of 1.6% compared to the January-October period of the previous year. Throughout the first three years of the six-year term, on average, tax revenues in January-October have represented 62.6% of total revenues, which shows less dependence in public finances on oil revenues and improvements in the tax framework ”, highlighted the Ministry of Finance in its report.
With the above, budget revenues totaled 4.7 trillion pesos, which meant an annual growth of 5.1% in the first 10 months of the year.