Taxes, Digital Currency, Market Behavior: The Week in Finance

Government entities have announced changes to tobacco fossil fuels and flavored taxes, this and more in your week in Finance!

Flavored Beverages, Fuels, Tobacco Face New Taxes

The Official Journal of the Federation (DOF) and the Ministry of Finance and Public Credit (SHCP) announced changes to the taxes of tobacco, fossil fuels and flavored beverages. “The applicable quotas to tobacco, automotive fuels, flavored beverages, fossil fuels and for gasoline and diesel will be updated annually and will come into effect as of January 1 of each year,” reads DOF’s press release.

Employer-Employee Fees Reach All-Time High: IMSS

The IMSS has implemented several strategies to guarantee an adequate financial management of the institution, while also reaching an all-time high employer-employee fees collection. Currently, collection in accordance  to the GDP is in its historical maximum,” reads an IMSS report. For the future, the policy to expand the insured base helped the collection strategy as well, with pilot programs for domestic and independent workers benefiting more than 50,000 people and their families guaranteeing a monthly collection of MX$60 million (US$2.9 million). Estimates for 2021 show an expected collection of MX$381.5 billion (US$18.41 billion) from employer-employee quotas, a figure MX$31.7 billion (US$1.53 billion) greater than the one in 2020.

Digital Currency by 2024

Banxico informed that by 2024 it will have its own digital currency in circulation. “Considering these new technologies and the next-generation payment infrastructure are extremely important as options of great value to advance financial inclusion in the country,” said Mexico’s government via twitter.

Positive Market Behavior in Spite Omicron

Monex’s opening directorate of economic analysis, exchange and stock market report indicated that markets around the world presented positive results after global evaluations of the Omicron variant and an ease in travel restrictions mainly in European countries. Monex also reported that the Mexican peso index showed a 0.10 percent appreciation compared to last week’s 0.4 percent and, in comparison, to November’s appreciation of 3.6 percent with almost no change in the dollar index and small volumes of operations. The peso reached MX$20.69 (US$1), with a similar situation to the American dollar, as there is barely anything expected in the currency’s economic agenda. For more about the subject, read this article.