Macro Analysis /
Global

Mexico: The Lower House approves the Revenue Law with no meaningful changes

  • Some changes were made relative to the MoF’s proposal, although with no meaningful effects on revenues

  • Macroeconomic forecasts were unchanged, with the tax code remaining the same as the one approved for 2022

  • The amount in the Revenue Law is $8.3 trillion. Now, the proposal goes to the Senate, with Oct-31 as the next deadline

Alejandro Padilla Santana
Alejandro Padilla Santana

Executive Director of Economic Research and Financial Markets Strategy

Follow
Contributors
Francisco Jose Flores Serrano
Juan Carlos Alderete Macal
Banorte
21 October 2022
Published byBanorte
  • Today, the Lower House finalized its part in the approval process of the 2023 Revenue Law 

  • We should remember that, in addition to the approval of the Revenue Law, there are also votes on modifications to the tax code and the Federal Rights Law in this step, which are also fundamental for Federal Government income 

  • With the brief freeze of the legislative clock (for just a few hours), the process was completed in due time and in compliance with the Fiscal Responsibility Law 

  • While some changes were approved relative to the proposal of the MoF, there were relatively modest, not having a meaningful effect on revenue figures 

  • Macroeconomic forecasts were unchanged vs. the MoF’s figures, highlighting GDP growth at 3.0%, the Mexican oil mix price at US$/bbl 68.7, and the exchange rate at USD/MXN 20.6 

  • Regarding the Federal Rights Law, only one reserve was discussed, although it was not accepted. On the other hand, we highlight increases in charges for the use of the radio spectrum, while some procedures related to the Ministry of Foreign Affairs will have their prices reduced 

  • The tax code remains the same as the one approved for 2022, implying no new taxes or hikes to the current framework 

  • Within the Revenue Law, two reserves were accepted. These were:

    (1)    Changes to the regularization process of vehicles bought abroad, with municipalities granted the possibility of transferring and using in 2023 the resources obtained from duties and fares collected in 2022; and

    (2)    Tax breaks for persons and companies that purchase and sell books, newspapers and magazines, with the condition that yearly revenue from these concepts does not surpass $6 million 

  • Despite the adjustments, the total amount in the Revenue Law stood at $8,299.6 billion (US$402.9 billion), in line with the estimate of the Ministry of Finance 

  • With this, the proposal is turned to the Senate, which will have until October 31st to approve it, either as presented or making their own changes. In the latter case, the proposal would be sent back to the Lower House