No VAT Increase / Economic Package 2027

Economic Package 2027. Minister of Finance Edgar Amador outlined the 2027 Economic Package, emphasizing long-term public finance sustainability across five central pillars: economic growth, protected spending priorities, revenue reinforcement, expenditure efficiency through austerity, and fiscal discipline. Amador noted that the proposal incorporates the Digital Economy Law to support economic development and guarantee funding for federal welfare programs.

Tax Administration Strategy. Antonio Dagnino, Head, Tax Administration Service (SAT), detailed revenue legislation submitted to Congress designed to strengthen tax collection without implementing new tax increases. Dagnino reported that the proposal incorporates deduction controls, Income Tax (ISR) loss mechanisms, Special Tax on Production and Services (IEPS) monitoring on fuel, tax regularization continuity, and administrative simplification for small businesses.

National Infrastructure Development Plan 2026-2030. President Claudia Sheinbaum presented the Development with Well-Being Infrastructure Investment Plan 2026-2030, allocating MX$5.7 trillion (US$337.3 billion) across key sectors: energy (54.15%), passenger and freight rail (15.63%), highways (13.94%), ports (6.48%), healthcare (6.23%), water management (2.83%), airports (0.4%), and education (0.3%). Sheinbaum confirmed ongoing construction on AIFA-Pachuca, Mexico City-Queretaro, Queretaro-Irapuato, and Saltillo-Monterrey-Nuevo Laredo rail corridors, alongside active highway tenders and expanded exploration and petrochemical projects by PEMEX.

Metro Line 12 Expansion. President Sheinbaum affirmed that the expansion of Line 12 of the Mexico City Metro system will be completed using resources from the infrastructure fund. Sheinbaum explained that excavation delays in the Alvaro Obregon borough resulted from complex underground soil fill conditions, confirming that tunnel construction is complete.

No VAT Increases. President Sheinbaum opposed Value-Added Tax (VAT) rate increases, calling the levy regressive because it disproportionately affects lower-income people relative to their earnings. Sheinbaum confirmed that the 2027 Economic Package contains no new taxes or fuel price hikes, focusing instead on closing tax avoidance loops.

Meeting with US Commerce Secretary. President Sheinbaum reported a scheduled virtual meeting with US Secretary of Commerce Howard Lutnick following aircraft transport issues that delayed his in-person arrival. Sheinbaum noted that discussions will address tariffs on Mexican steel and exports in coordination with US Trade Representative Jamieson Greer.

Historical Debt Budget Allocation. President Sheinbaum announced an upcoming briefing on the historical Banking Fund for the Protection of Savings (FOBAPROA) debt created in 1990 under former President Carlos Salinas de Gortari. Sheinbaum noted that the 2027 Economic Package allocates MX$48 million toward servicing this obligation.