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The Tax System in Mexico: A Need for Strengthening the Revenue-Raising Capacity

Listed author(s):
  • Thomas Dalsgaard

The Mexican tax system encompasses a number of commendable features and disincentives to work, save and invest appear less severe than in most other OECD countries. However, the system also contains major deficiencies, which hampers the efficiency and equity of the system and contribute to the fact that Mexico has by far the lowest level of tax revenues in relation to GDP among the OECD countries. The main priorities for reform should be base broadening measures such as eliminating the tax preferences for agriculture, fisheries, publishing and land transportation; substantially reducing the vast number of zero-rated and exempted goods and services in the VAT system; and broadening the income base of individuals by taxing fringe benefits and eliminate the fiscal subsidy. Furthermore, increased taxation of property, in particular real estate, would be warranted from both a revenue-raising and distributional point of view. Finally, administration could be further improved through a ... Le système fiscal mexicain présente un certain nombre d’aspects positifs, et les contre-incitations à travailler, à épargner et à investir semblent moins fortes au Mexique que dans la plupart des autres pays de l’OCDE. Cependant, le système présente aussi de sérieux défauts qui nuisent à son efficacité et à son équité et contribuent à faire du Mexique le pays de l’OCDE ayant de loin les recettes fiscales les plus faibles en proportion du PIB. Les réformes devraient viser en priorité à élargir l’assiette des impôts en supprimant les régimes préférentiels dont bénéficient l’agriculture, la pêche, l’édition et les transports terrestres, en réduisant sensiblement le nombre de produits et services assujettis à un taux zéro de TVA ou exemptés de cette taxe, et en élargissant les revenus imposables des personnes physiques par l’inclusion dans ceux-ci des avantages accessoires et par la suppression de la subvention fiscale. En outre, une imposition plus lourde de la propriété, immobilière ...

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Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 233.

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Date of creation: 02 Mar 2000
Handle: RePEc:oec:ecoaaa:233-en
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