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A Mexican sales tax on foreign digital businesses providing audio or visual services could generate tax revenue of about MXN $3.6 billion pesos a year, a senior lawmaker from Mexico’s ruling party , Morena , said on Tuesday.
On Monday, the Finance Ministry said it is in talks to levy the charge on foreign online businesses , and the ruling party has sent a bill to Congress to legislate for the tax .
“If we approve the initiative, the Mexican state could obtain around MXN $3.6 billion pesos a year, ” Ricardo Monreal, Senate leader of Morena , told a news conference.
“I’m not talking about Uber , I’m not talking about Airbnb ,” Monreal added. “I’m only talking about the audiovisuals . Essentially, Netflix , Apple , Spotify ... Amazon Prime and another, there are four or five.”
Mexico has pursued new sources of revenue to help plug a n income gap after changes in the way national oil company Petroleos Mexicanos (Pemex) contributes to state coffers.
Mexico’s overall tax
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take is the lowest in the 36-nation Organisation for Economic Co-operation and Development (OECD) . In 2017, it stood at 16.2% as a proportion of gross domestic product ( GDP ), less than half the OECD average.
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