Treasury will 100% subsidize gasoline; consumers will not pay IEPS

From October 15 to 21, the fiscal stimulus for gasoline will be at 100%, that is, consumers will not pay a new Special Tax on Production and Services (IEPS), reported the Ministry of Finance and Public Credit (SHCP).

The dependency, in charge of Rogelio Ramírez de la O, returned the fiscal stimulus to the two gasolines after 10 weeks for Magna and 11 weeks for Premium, according to the Official Gazette of the Federation.

With the order of the SHCP, the three fuels did not have the stimulus at 100% at the same time since July 30 of this year.

As previously mentioned, until Friday, October 21, the fiscal stimulus for the Special Tax on Production and Services on Magna gasoline rose to 100% from 92.44% registered the previous week.

Meanwhile, the federal government raised the stimulus for Premium gasoline to 100% from 76.99% registered in the week ending October 14.

Diesel is the only one of the three fuels that has had the federal government subsidy since March 5 of this year, in other words, it accumulates a little more than seven months with the 100 percent rate.

The fiscal stimuli on the IEPS of gasoline and the complementary ones that have been applied on the Income Tax (ISR) and Value Added Tax (VAT) totaled 307,971 million pesos at the end of September, according to the Administration Service Tax (SAT).

In other words, 88% of the 350,000 million pesos projected by the Tax Administration Service three months before the end of the year have been covered. At most, the SAT, headed by Antonio Martínez, plans 400,000 million pesos for the gasoline subsidy.

The federal government has reiterated on several occasions that if it were not for the tax incentives for gasoline, inflation in Mexico would be around 14% at an annual rate.

The fiscal stimulus is a mechanism so that consumers do not suffer from the rise in international oil prices, which, although they have fallen, are still high.

At the close of Friday, the West Texas Intermediate (WTI) price of a barrel registered a drop of 2.97 dollars to 86.14 dollars per barrel. Meanwhile, Brent crude fell 2.65% to $92.05 a barrel.

santiago.renteria@eleconomista.mx