Mexico - Country Economic Memorandum : Challenges and Prospects for Tax Reform
Over the last ten years, the need for sustainable tax revenues has become clear, in order to provide more public expenditures in areas such as, poverty alleviation, health, education, and infrastructure, as well as for payment of the recent social...
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| Language: | English en_US |
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Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2002/07/1979346/mexico-country-economic-memorandum-challenges-prospects-tax-reform http://hdl.handle.net/10986/15377 |
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okr-10986-15377 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English en_US |
| topic |
COUNTRY ECONOMIC WORK TAX REFORMS PUBLIC EXPENDITURES TAX REVENUES POVERTY ALLEVIATION MECHANISMS HEALTH CARE DELIVERY EQUITY IN EDUCATION INFRASTRUCTURE DEVELOPMENT SOCIAL SECTOR REFORM SOCIAL SECURITY SYSTEMS BANKING SYSTEMS SOCIAL SECURITY FINANCE ADMINISTRATIVE CAPABILITY POLITICAL CONSTRAINTS TAX BASES OIL REVENUES TAX BURDENS TAX EXEMPTION VALUE ADDED TAXES CORPORATE TAXATION PERSONAL INCOME TAX REFORM POLICY FISCAL CONSOLIDATION LEGAL FRAMEWORK LAW ENFORCEMENT ACCOUNTABILITY ACCOUNTING ADVERSE EFFECTS AGRICULTURE ALLOCATION OF RESOURCES AUDITING BANKING SECTOR BASIC EDUCATION BUDGET EXPENDITURES BUDGET PROCESS BURDEN OF TAXES CAPITAL GAINS CAPITAL MARKETS CASH-FLOW CITIZENS CONSTITUTION CONSUMERS CONSUMPTION TAXES CORPORATE INCOME TAX CORRUPTION CROWDING OUT DEBT DECREE DEMOCRATIC PROCESS DEVOLUTION DIVIDENDS DRINKING WATER ECONOMIC COOPERATION ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC SECTORS EQUALIZATION EVASION EXCISE TAXES EXPENDITURE RESPONSIBILITIES EXPENDITURES EXPORTS FACTORING FEDERAL GOVERNMENT FINANCIAL RESOURCES FISCAL FISCAL DEFICIT FISCAL INCENTIVES FISCAL MANAGEMENT FISCAL POLICY FISCAL PROBLEMS FISCAL REFORM FOREIGN INVESTMENT FREE TRADE GDP GOVERNMENT RESOURCES GOVERNMENT REVENUES GOVERNMENT'S BUDGET GROSS NATIONAL PRODUCT GROSS REVENUE GROSS REVENUES HEALTH SERVICES HORIZONTAL EQUITY HUMAN DEVELOPMENT HUMAN RESOURCE HUMAN RESOURCE DEVELOPMENT HUMAN RESOURCES INCOME INCOME GROUPS INCOME INEQUALITY INCOME LEVELS INCOME SUPPORT INCOME TAXES INDEXATION INEFFICIENCY INFLATION INFORMAL SECTOR INSTITUTIONAL DEVELOPMENT INTEREST INCOME INTEREST RATE INTEREST RATES INTERGOVERNMENTAL FISCAL RELATIONS INVENTORY LABOR MOBILITY LAWS LEGAL PROVISIONS LEGISLATION MANDATES MUNICIPAL PROPERTY MUNICIPALITIES NATIONAL LEVEL NATIONAL TAXES NET WORTH OIL OIL PRICES OIL SECTOR OPERATING COSTS PENALTIES PER CAPITA INCOMES PERSONAL INCOME TAXES POSITIVE EFFECTS POVERTY ALLEVIATION PRICE DECLINES PRICE FLUCTUATIONS PRIVATE SECTOR PROVISIONS PUBLIC EXPENDITURE PUBLIC HEALTH PUBLIC SECTOR PUBLIC SERVICES PUBLIC SPENDING RESOURCE USE RETAIL SALES TAX RETAINED EARNINGS RETIREMENT REVENUE CAPACITY REVENUE COLLECTION REVENUE GROWTH REVENUE SOURCES ROYALTY SALES TAXES SOCIAL PROGRAMS SOCIAL SECURITY SOCIAL SECURITY REFORM SOCIAL SERVICES SUBNATIONAL GOVERNMENTS SUBSIDIARIES SUBSIDIARY TAX TAX ADMINISTRATION TAX ADMINISTRATIONS TAX AUTHORITY TAX BURDEN TAX BURDENS TAX COLLECTION TAX COLLECTIONS TAX COMPLIANCE TAX EXPENDITURES TAX LAW TAX OBLIGATION TAX OBLIGATIONS TAX PAYMENTS TAX POLICY TAX RATE TAX RATES TAX REFORM TAX REFORMS TAX RETURNS TAX REVENUE TAX REVENUES TAX SYSTEM TAXATION TECHNICAL ASSISTANCE TOTAL REVENUE TRANSACTION COSTS TRANSPARENCY TRANSPORT VALUE ADDED VALUE ADDED TAXES WAGES WEALTH |
| spellingShingle |
COUNTRY ECONOMIC WORK TAX REFORMS PUBLIC EXPENDITURES TAX REVENUES POVERTY ALLEVIATION MECHANISMS HEALTH CARE DELIVERY EQUITY IN EDUCATION INFRASTRUCTURE DEVELOPMENT SOCIAL SECTOR REFORM SOCIAL SECURITY SYSTEMS BANKING SYSTEMS SOCIAL SECURITY FINANCE ADMINISTRATIVE CAPABILITY POLITICAL CONSTRAINTS TAX BASES OIL REVENUES TAX BURDENS TAX EXEMPTION VALUE ADDED TAXES CORPORATE TAXATION PERSONAL INCOME TAX REFORM POLICY FISCAL CONSOLIDATION LEGAL FRAMEWORK LAW ENFORCEMENT ACCOUNTABILITY ACCOUNTING ADVERSE EFFECTS AGRICULTURE ALLOCATION OF RESOURCES AUDITING BANKING SECTOR BASIC EDUCATION BUDGET EXPENDITURES BUDGET PROCESS BURDEN OF TAXES CAPITAL GAINS CAPITAL MARKETS CASH-FLOW CITIZENS CONSTITUTION CONSUMERS CONSUMPTION TAXES CORPORATE INCOME TAX CORRUPTION CROWDING OUT DEBT DECREE DEMOCRATIC PROCESS DEVOLUTION DIVIDENDS DRINKING WATER ECONOMIC COOPERATION ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC SECTORS EQUALIZATION EVASION EXCISE TAXES EXPENDITURE RESPONSIBILITIES EXPENDITURES EXPORTS FACTORING FEDERAL GOVERNMENT FINANCIAL RESOURCES FISCAL FISCAL DEFICIT FISCAL INCENTIVES FISCAL MANAGEMENT FISCAL POLICY FISCAL PROBLEMS FISCAL REFORM FOREIGN INVESTMENT FREE TRADE GDP GOVERNMENT RESOURCES GOVERNMENT REVENUES GOVERNMENT'S BUDGET GROSS NATIONAL PRODUCT GROSS REVENUE GROSS REVENUES HEALTH SERVICES HORIZONTAL EQUITY HUMAN DEVELOPMENT HUMAN RESOURCE HUMAN RESOURCE DEVELOPMENT HUMAN RESOURCES INCOME INCOME GROUPS INCOME INEQUALITY INCOME LEVELS INCOME SUPPORT INCOME TAXES INDEXATION INEFFICIENCY INFLATION INFORMAL SECTOR INSTITUTIONAL DEVELOPMENT INTEREST INCOME INTEREST RATE INTEREST RATES INTERGOVERNMENTAL FISCAL RELATIONS INVENTORY LABOR MOBILITY LAWS LEGAL PROVISIONS LEGISLATION MANDATES MUNICIPAL PROPERTY MUNICIPALITIES NATIONAL LEVEL NATIONAL TAXES NET WORTH OIL OIL PRICES OIL SECTOR OPERATING COSTS PENALTIES PER CAPITA INCOMES PERSONAL INCOME TAXES POSITIVE EFFECTS POVERTY ALLEVIATION PRICE DECLINES PRICE FLUCTUATIONS PRIVATE SECTOR PROVISIONS PUBLIC EXPENDITURE PUBLIC HEALTH PUBLIC SECTOR PUBLIC SERVICES PUBLIC SPENDING RESOURCE USE RETAIL SALES TAX RETAINED EARNINGS RETIREMENT REVENUE CAPACITY REVENUE COLLECTION REVENUE GROWTH REVENUE SOURCES ROYALTY SALES TAXES SOCIAL PROGRAMS SOCIAL SECURITY SOCIAL SECURITY REFORM SOCIAL SERVICES SUBNATIONAL GOVERNMENTS SUBSIDIARIES SUBSIDIARY TAX TAX ADMINISTRATION TAX ADMINISTRATIONS TAX AUTHORITY TAX BURDEN TAX BURDENS TAX COLLECTION TAX COLLECTIONS TAX COMPLIANCE TAX EXPENDITURES TAX LAW TAX OBLIGATION TAX OBLIGATIONS TAX PAYMENTS TAX POLICY TAX RATE TAX RATES TAX REFORM TAX REFORMS TAX RETURNS TAX REVENUE TAX REVENUES TAX SYSTEM TAXATION TECHNICAL ASSISTANCE TOTAL REVENUE TRANSACTION COSTS TRANSPARENCY TRANSPORT VALUE ADDED VALUE ADDED TAXES WAGES WEALTH World Bank Mexico - Country Economic Memorandum : Challenges and Prospects for Tax Reform |
| geographic_facet |
Latin America & Caribbean Mexico |
| description |
Over the last ten years, the need for
sustainable tax revenues has become clear, in order to
provide more public expenditures in areas such as, poverty
alleviation, health, education, and infrastructure, as well
as for payment of the recent social security reform, and
banking sector support. The report examines the key problems
in Mexico's tax, and revenue system, identifying
administration as the weakest factor in its tax system,
where such weakness has contributed to political resistance
in broadening the tax base. In addition, the system relies
heavily on oil revenues, only about thirty percent of the
total, and dependent on world prices, thus, the rest of the
economy will have to bear a larger tax burden as a share of
GDP. Meanwhile, various exemptions, and special regimes
erode the base of the most important taxes - Value Added Tax
(VAT), corporate, and personal income taxes, and, most tax
decisions, and the derived political consequences, continue
at the national level, while the delivery of services is
increasingly devolved to sub-national levels. Within the
reform options, the most relevant fall in three areas:
national tax policy, administration, and inter-governmental
fiscal relations, where the central theme is to improve
revenue capacity, efficiency, and horizontal equity of the
system, by simplifying laws, eliminating exemptions, and
facilitating compliance, and enforcement. Such reform
strategy will be successful if implemented in a coordinated
way, by reducing evasion, and improving collection; by the
already implemented income tax reform (end of 2001),
although the VAT and petroleum taxation remain on the agenda
for future action; and, by the State cooperation in the tax
reform program, to improve enforcement, particularly the VAT. |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Mexico - Country Economic Memorandum : Challenges and Prospects for Tax Reform |
| title_short |
Mexico - Country Economic Memorandum : Challenges and Prospects for Tax Reform |
| title_full |
Mexico - Country Economic Memorandum : Challenges and Prospects for Tax Reform |
| title_fullStr |
Mexico - Country Economic Memorandum : Challenges and Prospects for Tax Reform |
| title_full_unstemmed |
Mexico - Country Economic Memorandum : Challenges and Prospects for Tax Reform |
| title_sort |
mexico - country economic memorandum : challenges and prospects for tax reform |
| publisher |
Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2002/07/1979346/mexico-country-economic-memorandum-challenges-prospects-tax-reform http://hdl.handle.net/10986/15377 |
| _version_ |
1764427087518629888 |
| spelling |
okr-10986-153772021-04-23T14:03:14Z Mexico - Country Economic Memorandum : Challenges and Prospects for Tax Reform World Bank COUNTRY ECONOMIC WORK TAX REFORMS PUBLIC EXPENDITURES TAX REVENUES POVERTY ALLEVIATION MECHANISMS HEALTH CARE DELIVERY EQUITY IN EDUCATION INFRASTRUCTURE DEVELOPMENT SOCIAL SECTOR REFORM SOCIAL SECURITY SYSTEMS BANKING SYSTEMS SOCIAL SECURITY FINANCE ADMINISTRATIVE CAPABILITY POLITICAL CONSTRAINTS TAX BASES OIL REVENUES TAX BURDENS TAX EXEMPTION VALUE ADDED TAXES CORPORATE TAXATION PERSONAL INCOME TAX REFORM POLICY FISCAL CONSOLIDATION LEGAL FRAMEWORK LAW ENFORCEMENT ACCOUNTABILITY ACCOUNTING ADVERSE EFFECTS AGRICULTURE ALLOCATION OF RESOURCES AUDITING BANKING SECTOR BASIC EDUCATION BUDGET EXPENDITURES BUDGET PROCESS BURDEN OF TAXES CAPITAL GAINS CAPITAL MARKETS CASH-FLOW CITIZENS CONSTITUTION CONSUMERS CONSUMPTION TAXES CORPORATE INCOME TAX CORRUPTION CROWDING OUT DEBT DECREE DEMOCRATIC PROCESS DEVOLUTION DIVIDENDS DRINKING WATER ECONOMIC COOPERATION ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC SECTORS EQUALIZATION EVASION EXCISE TAXES EXPENDITURE RESPONSIBILITIES EXPENDITURES EXPORTS FACTORING FEDERAL GOVERNMENT FINANCIAL RESOURCES FISCAL FISCAL DEFICIT FISCAL INCENTIVES FISCAL MANAGEMENT FISCAL POLICY FISCAL PROBLEMS FISCAL REFORM FOREIGN INVESTMENT FREE TRADE GDP GOVERNMENT RESOURCES GOVERNMENT REVENUES GOVERNMENT'S BUDGET GROSS NATIONAL PRODUCT GROSS REVENUE GROSS REVENUES HEALTH SERVICES HORIZONTAL EQUITY HUMAN DEVELOPMENT HUMAN RESOURCE HUMAN RESOURCE DEVELOPMENT HUMAN RESOURCES INCOME INCOME GROUPS INCOME INEQUALITY INCOME LEVELS INCOME SUPPORT INCOME TAXES INDEXATION INEFFICIENCY INFLATION INFORMAL SECTOR INSTITUTIONAL DEVELOPMENT INTEREST INCOME INTEREST RATE INTEREST RATES INTERGOVERNMENTAL FISCAL RELATIONS INVENTORY LABOR MOBILITY LAWS LEGAL PROVISIONS LEGISLATION MANDATES MUNICIPAL PROPERTY MUNICIPALITIES NATIONAL LEVEL NATIONAL TAXES NET WORTH OIL OIL PRICES OIL SECTOR OPERATING COSTS PENALTIES PER CAPITA INCOMES PERSONAL INCOME TAXES POSITIVE EFFECTS POVERTY ALLEVIATION PRICE DECLINES PRICE FLUCTUATIONS PRIVATE SECTOR PROVISIONS PUBLIC EXPENDITURE PUBLIC HEALTH PUBLIC SECTOR PUBLIC SERVICES PUBLIC SPENDING RESOURCE USE RETAIL SALES TAX RETAINED EARNINGS RETIREMENT REVENUE CAPACITY REVENUE COLLECTION REVENUE GROWTH REVENUE SOURCES ROYALTY SALES TAXES SOCIAL PROGRAMS SOCIAL SECURITY SOCIAL SECURITY REFORM SOCIAL SERVICES SUBNATIONAL GOVERNMENTS SUBSIDIARIES SUBSIDIARY TAX TAX ADMINISTRATION TAX ADMINISTRATIONS TAX AUTHORITY TAX BURDEN TAX BURDENS TAX COLLECTION TAX COLLECTIONS TAX COMPLIANCE TAX EXPENDITURES TAX LAW TAX OBLIGATION TAX OBLIGATIONS TAX PAYMENTS TAX POLICY TAX RATE TAX RATES TAX REFORM TAX REFORMS TAX RETURNS TAX REVENUE TAX REVENUES TAX SYSTEM TAXATION TECHNICAL ASSISTANCE TOTAL REVENUE TRANSACTION COSTS TRANSPARENCY TRANSPORT VALUE ADDED VALUE ADDED TAXES WAGES WEALTH Over the last ten years, the need for sustainable tax revenues has become clear, in order to provide more public expenditures in areas such as, poverty alleviation, health, education, and infrastructure, as well as for payment of the recent social security reform, and banking sector support. The report examines the key problems in Mexico's tax, and revenue system, identifying administration as the weakest factor in its tax system, where such weakness has contributed to political resistance in broadening the tax base. In addition, the system relies heavily on oil revenues, only about thirty percent of the total, and dependent on world prices, thus, the rest of the economy will have to bear a larger tax burden as a share of GDP. Meanwhile, various exemptions, and special regimes erode the base of the most important taxes - Value Added Tax (VAT), corporate, and personal income taxes, and, most tax decisions, and the derived political consequences, continue at the national level, while the delivery of services is increasingly devolved to sub-national levels. Within the reform options, the most relevant fall in three areas: national tax policy, administration, and inter-governmental fiscal relations, where the central theme is to improve revenue capacity, efficiency, and horizontal equity of the system, by simplifying laws, eliminating exemptions, and facilitating compliance, and enforcement. Such reform strategy will be successful if implemented in a coordinated way, by reducing evasion, and improving collection; by the already implemented income tax reform (end of 2001), although the VAT and petroleum taxation remain on the agenda for future action; and, by the State cooperation in the tax reform program, to improve enforcement, particularly the VAT. 2013-08-27T19:37:22Z 2013-08-27T19:37:22Z 2002-07-30 http://documents.worldbank.org/curated/en/2002/07/1979346/mexico-country-economic-memorandum-challenges-prospects-tax-reform http://hdl.handle.net/10986/15377 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Latin America & Caribbean Mexico |