CDMX tax reform aims not to create a new tax, but to attack tax evasion: Gonzalez Escobar

Reform proposal for Article 307 TER of tax law From Mexico City to generate a new tax on home delivery and parcel services, what is proposed is to exploit that are not intended to influence the economic activitiesOn the contrary, it is focused on attacking tax evasion, as explained by the capital’s Minister of Administration and Finance, Luz Elena Gonzalez Escobar.

In an interview with The Economist, stated that this new proposal does not seek to provoke any to exploit To e-commerce, in fact, it focuses on Mediation service that offer certain digital platforms between different economic sectors to reach consumers; “It’s what’s commonly used as a delivery.”

“Actually, it’s not a tax, it’s to exploit Focuses on platforms that provide brokerage services. It is important to say that we do not intend to regulate, tax, exploit or tax digital commerce, they do not focus on this sector and to a lesser extent on digital commerce income, because in addition, they do not have powers. This is something that is an effort by the SHCP at the federal level and big companies like Mercado Libre and Amazon are complying with the proposed regulation.”

In this period, a tax on the shipping cost is excluded, or it applies to tips, as well as to businesses that have their own delivery systems (such as pizzerias, flower shops, department stores, among others.).

No use will be applied to companies that contract to ship their products with logistics companies.

Luz Elena emphasized that uses have the property of legally non-transferable and where the subject matter is quite specific, so neither users nor consumers will have to provide any additional resource.

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“It is not a cumbersome use, it is at least 2% of this intermediation service, so be careful, it is not a distribution service, it does not reach distributors or consumers. The use does not affect the economic revitalization, as a fee will be charged,” said Luz Elena González Escobar. On pay-as-you-go applications only in exchange for carrying out their activity as intermediaries.”

The Mexico City government has introduced an initiative to reform various provisions of tax law, within the framework of the project Economy Package 2022.

Among the proposed changes is the addition of a New material 307 TER that would charge a fee of 2% of the total amount (for sales), before taxes, for each delivery to individuals or legal entities that operate, use, and/or manage applications and/or computer platforms for control, programming and/or geolocation in fixed devices or Portable, with which users can contract for the delivery of parcels, food, pantry or any type of merchandise with delivery in the Capital Territory.

Objectives

The Secretary of Administrative and Financial Affairs indicated that the aim of this exploitation is to achieve the improvement of roads and physical infrastructure, which ultimately facilitates the delivery service.

“It’s not a street fee, these platforms have business volume thanks to the infrastructure of this city, and this business cannot be done in the Sierra de Guerrero, it is in Mexico City because it is the most connected in the world, with more free internet points. And these platforms do not return nothing at all to the city, but it charges all the actors in the series to take advantage of that, what we regulate, what we want is for them to have a sense of social responsibility that allows them to operate,” he digs.

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Other governments in the world are already implementing this type of regulation scheme on brokerage platforms such as Spain, UK and France. At the national level, a tax is applied in Guanajuato to the sale of products through platforms.

an agreement

Given the confusion that this will be a new tax, the minister stated that last week a dialogue was started with the private sector to clarify the situation.

“This issue has been exaggerated, we have been talking all week with each of the representatives. There has been no explanation, we are aware of it, but there is no desire to harm or affect any affected economic sector,” he said.

This weekend, Coparmex reported in the capital that it was agreed to continue prioritizing dialogue and an open working table will be held.

The business leadership also mentioned “the need to put in place tax incentives to stimulate investment and insisted on its proposal allowing a 2% salary waiver for all newly created jobs.”

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