Faced with increasing public spending and a slower pace of tax collection such as ISR and IEPS, specialists suggest reforms to increase public revenue.
In Mexico, personal income tax is paid based on a progressive rate based on income level. There are 11 rates ranging from 1.9% to 35%; however, to pay the maximum rate, income must be 28.7 times greater than the average salary in the country, while the OECD average is 5.4 times, explains an analysis by the Alliance for Tax Justice.
For this reason, this organization proposes increasing the country’s maximum marginal rate to values close to the OECD average, in addition to reducing the minimum income threshold for paying taxes at the 35% rate; that is, that people with annual incomes of 2.2 million pesos pay taxes at this maximum level, and not from 4.5 million, as is currently the case.
Necessary, more information from the SAT
Another 11% of respondents mentioned, among their suggestions for improving tax collection, greater dissemination of information on compliance with tax obligations. Meanwhile, 10% mentioned the simplification of procedures (less paperwork and bureaucracy), and 3% mentioned the development of a modern electronic platform that is easy to understand and use.
Among the suggestions that received the least mention, or even 0%, were providing benefits to taxpayers based on their type of regime; the application of audits to a greater number of taxpayers, and the reduction/eradication of corruption in the institution.
Improving agreements to comply with tax obligations and providing courses to taxpayers on correct compliance were options that were not mentioned by those surveyed, according to figures from the tax authority.
