Mexico City’s Total Tax Revenue Exceeds ExpectationsBy Emilio Aristegui | Wed, 11/03/2021 - 12:32
After the strict restrictions and the highest number of COVID-19 cases during the pandemic, Mexico City businesses begin to operate normally, registering an unexpected increase in the tax revenue.
Mexico City registered an important recovery as coronavirus restrictions untighten for businesses and the general population, according to a press release from the Ministry of Administration and Finance (SAF). “For 3Q21, mostly positive results were observed within total revenues with respect to the estimates for the period, which are mainly associated with the reopening of economic activities and the gradual restoration of mobility in the City.”
The results are attributed to the reopening of economic activities in Mexico City, according to SAF’s Quarterly Progress Report, which adds that the adequate progress of the National Vaccination Plan has allowed the city to reopen most of its businesses to the general public. The Report also highlighted the timely compliance of Mexico City’s taxpayers, which reaffirms the consolidation of the tax culture among the city’s habitants, reads the report.
As Mexico continues to focus on tax collection strategies to create a more efficient system, Mexico City’s taxpayers have answered to the government’s call. SAF’s press release indicates that Mexico City’s total income was 6.5 percent above the estimated amount for 3Q21 with an additional MX$10.77 billion (US$517 million).
Mexico City registered MX$177 billion (US$8.5 billion) for 3Q21, as Mexico City looks set to undergo an important economic reactivation after the COVID-19 crisis. The Quarterly Progress Report indicated that, “From January 20, the start date of the vaccination campaign, and until September 30, 2021, more than 11 million vaccines were applied against COVID-19, which reduced infections and hospital occupancy, and with them economic activities and their capacities were gradually expanded, respecting sanitary measures.”
SAF also reduced the Property Acquisition Tax (ISAI) of inheritances by 50 percent and allowed SMEs and restaurants in the central area of Mexico City (Historical Center) to waive the total Payroll Tax during January 2021.