Tax collection saves public coffers; report from the Ministry of Finance

Between January and August of this year, four billion 647 thousand 979.6 million pesos entered the public coffersa figure lower than the programmed and which represents a real variation of zero percent against the same period in 2022.

This result, according to the Public Finance Report of the Ministry of Finance, was due to a drop in oil revenues of 25.2%, which was offset by a 7.7% increase in taxes.

The Oil revenues were 707 thousand 764.3 million of pesos as of August, less than the 904 thousand 636.6 million budgeted. The above, due to the drop in the price of crude oil, of 5.8% between what was budgeted and what was observed, and due to the appreciation of the Mexican peso against the dollar.

The increase in taxes was favored by the real annual increase of 3.6% in the collection of the ISR, given the increase in salaries, high levels of employment and the greater profits of companies, explained the Treasury. Although VAT collection decreased 8.4% in real terms, IEPS collection was six times higher in real terms, compared to January-August 2022.

Specifically, the fuel component reached 140,998.5 million pesos due to lower incentives for gasoline and diesel prices,” the agency indicated.

Regarding total spending accumulated between January and August, it grew 4.7% in real terms.

IT MAY INTEREST YOU: Tax collection grows 7.5% in August: SAT

IMPROVE TAX COLLECTION; GROWS 7.7%

From January to August 2023, four billion 647 thousand 979.6 million pesos entered the public coffers, a figure below the programmed and with a real variation of zero percent compared to 2022.

In the Public Finance Report of the Ministry of Finance, it is detailed that this result was due to a collapse in oil revenues of 25.2 percent, while tax revenues grew 7.7 percent. Oil revenues amounted to 707 thousand 764.3 million pesos in the first eight months of the year, below the 904 thousand 636.6 million pesos budgeted.

*Source: Treasury.

The above was caused by a drop in the price of crude oil of 5.8 percent, between what was budgeted and what was observed, as well as the appreciation of the peso against the dollar.

Instead, During August, tax revenues had a better performance, reporting an increase of 19.1 percent, compared to the same month in 2022.

Tax collection registered an increase of 7.7% in real terms compared to January-August 2022, the highest since 2016. This result was favored by the 3.6% real annual increase in income tax (ISR) collection, in the context of increased wages, high levels of employment and higher company profits,” the Treasury explained.

LOWERS IN VAT

Regarding the collection of value added tax (VAT), a drop of 8.4 percent was recordedin real terms, with respect to January-August 2022. This was due to the appreciation of the exchange rate and the increase in compensation and refunds by the SAT.

The collection of the tax on production and services (IEPS) was 6.0 times greater in real terms compared to January-August 2022. “Specifically, the fuel component reached 140 thousand 998.5 million pesos due to lower stimuli for gasoline and diesel prices.”

Regarding total spending accumulated between January and August, it grew by 4.7% in real terms. It should be noted that from January to August an underspend was reported, since Resources were disbursed for 5 billion 172 thousand 392.5 million pesos, below what was programmed which were 5 billion 460 thousand 650.2 million pesos.

Considering income and expenditure, the budget balance recorded a deficit of 524 thousand 412.9 million pesos, lower by 135 thousand 884.5 million pesos than expected.

In August, the country's public finances remained healthy and in balance. "It is estimated that the budget balance meets the approved goal."

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