La Jornada – Intellectual property expects tax-free tax reform for economic revitalization

Mexico City. Tax reform without tax increases, with benefits for certain sectors and simplification for micro, small and medium enterprises (MSMEs) encouraging economic revitalization is what the private sector expects, if the federal government promotes a change in the matter, said the Mexican Institute of Public Accountants (IMCP).

Carlos Salazar Lumlin, President of the Coordination of Business Council (CCE), noted that two complaints in matters of labor under the protection of the Treaty of Mexico, the United States and Canada (T-MEC) are not a thing and that it is also necessary to talk about the abuses suffered by agricultural workers in a neighboring country to the north

Diamantina Perales Flores, leader of the IMCP, noted that if the federal government promoted financial reform, it would not have “as much significance, as our country needs.”

He noted that no new taxes are expected, but there will also be no tax increase, despite the simplification for small and medium enterprises. In this sense, he commented that it is not known whether it will be administrative or will have the benefits of economic revitalization.

“However, what is expected is that there will be greater control in some sectors that although there are powers of verification and adjustment, it has been refined by the authority in the past two years, in 2020 at this present time 2021, it was able to audit all sectors. He noted that further inspections have already been announced.

“Since our country requires more collection, it is intended to obtain through this inspection to compensate, because there will be no increase in taxes,” he said in the context of signing an agreement between the IMCP and CCE.

He added that it is desirable to broaden the taxpayer base, as this ensures greater fairness in taxes.

Salazar Lumelin noted that the agreement signed with the IMCP was not related to the government’s control campaign. He noted that the government bears the responsibility to collect taxes and that all Mexicans contribute to the public treasury.

“We are all first subject to the obligation to pay our taxes and contribute to the public treasury because at any time we are audited,” he said.

He stressed that the Tax Administration Service (SAT) should be an entity that the private sector should fear.

Separately, Coparmex indicated that Mexico urgently needs to modernize and make its financial framework more flexible, encourage investment with the private sector, improve financial inclusion, and enhance women’s participation in the economy. Above all, enhance formalities globally.

“There is a lot that needs to be done before considering raising or raising taxes, and without a doubt, the coexistence of well-executed austerity and a better way of spending will become a lever to revitalize the economy and help millions of families move forward.”

Labor complaints

Salazar Lumelin dismissed two labor complaints under the T-MEC as a cause for concern, because the trade relationship between Mexico and the United States includes thousands of companies and half a billion dollars.

“What we should encourage is denouncing practices in the United States that are inappropriate from the workers’ point of view,” he said.

He commented that 70 percent of the farm produce in the United States is done by Mexican workers, who are not paid fair, so discriminatory treatment should be a reason to report.