Gasoline Will Keep 100 Percent Tax Incentive: SHCP
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Gasoline Will Keep 100 Percent Tax Incentive: SHCP

Photo by:   Image by HarryStilianou from Pixabay
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Emilio Aristegui By Emilio Aristegui | Junior Journalist and Industry Analyst - Thu, 10/27/2022 - 10:00

Mexico’s SHCP maintained the fiscal stimulus on gasoline with a 100 percent tax incentive for all three types of gasoline. Gabriel Yorio, Deputy Minister of Finance, said that this hedge could protect Mexico’s budget. 

Ready? This is the week in finance:

Insurance Gap Remains Substantial

The GIP-MAPFRE Global Insurance Potential Index found that many markets around the world have high growth capacity, with a US$7 trillion insurance gap in 2021. 

“Two relevant aspects that were identified must be taken into account. The first is that most of the insurance gap comes from the emerging world, with 77.6 percent, and the second is that the insurance gap in the life segment has grown faster than in the non-life segment,” said Manuel Aguilera, CEO, MAPFRE Economics. 

Clara, Google Will Potentialize SME Digitization

Clara and Google announced an alliance to help SMEs boost sales through digitalization. Both companies will help these companies to adopt technological tools and easily accessible financial products. 

"As of today, Clara’s clients will be able to access tools that enable the digitalization and growth of their businesses through financing products," said Clara in a press release.

Oil price expectations for 2023 Between US$70 and US$75/b

Mexico’s hedge will provide higher profits but it will also increase spending due to the projected insufficiency of gasoline. Oil price expectations for 2023 stand between US$70 and US$75/b. 

“There may be a global slowdown and then the price may fall, but we have an oil hedge that allows us to shield the budget. Cuts in our spending may not be necessary; we can shield the budget and isolate the impact of the drop in oil prices,” said Yorio. 

SHCP Announces Fiscal Stimulus on Gasoline

Mexico’s Ministry of Finance and Public Credit (SHCP) will apply a 100 percent tax incentive on the three types of gasoline, exempting consumers from paying the Special Tax on Production and Services (IEPS). 

However, Victor Gomez Ayala, Economy Professor, Instituto Tecnológico Autónomo de México (ITAM), said that the fiscal stimulus on IEPS will lead PEMEX’s tax contributions to decline. 

FinTech as a Vehicle to Reduce Poverty 

“Financial inclusion is only now beginning to take off. It will not happen for everyone and it will not happen overnight. But I predict it will reach 80 percent of the population in less than a decade,” said Juan Miguel Guerra, CEO, Revolut.

Nearly 99 million people have access to the internet in Mexico, and 70 million own a smartphone. Digital channels reduce costs by nearly 70 percent in comparison to branch services. 

Yaydoo Enhances B2B Presence with Oyster Financial Acquisition

Financial services startup Oyster Financial was acquired by Yaydoo, in a strategy that will increase its presence in the payment, collections and B2B transactions in the Latin American market. 

“The acquisition occurs because of the complementary potential between the solutions of both companies, facilitating integration with different accounting systems and ERPs,” announced Yaydoo via a press release.

Photo by:   Image by HarryStilianou from Pixabay

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