Mexico | More tax revenue is possible with VAT and personal income taxes

Boosting tax revenue with VAT requires the elimination of the zero-rate for many products with the exception of some food items and would be justified by tax regressivity

Key points

• Key points:
• It would be desirable that any fiscal reform be accompanied by a strengthening of social security networks
• Increasing tax revenue with personal income taxes could be achieved by broadening the taxpayers base corresponding to the bracket with the highest marginal tax rate

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