Mexico's SAT reports first ISR revenue decline since 2009

The Mexican Tax Administration Service (SAT) recorded 2.205 trillion pesos in Income Tax (ISR) collections from January to September, marking a 5.27% contraction in real annual terms. According to the Public Finance Report from the Ministry of Finance and Public Credit, this represents the first decline in ISR collection for this period since 2009.

ISR is a critical component of the federal government's revenue, accounting for 51.37% of total tax income. Total public sector budgetary revenues contracted by 2.8% in real annual terms during the same period, reaching 6.304 trillion pesos.

While the Ministry of Finance noted strong performance in Value Added Tax (VAT), ISR collections have seen eight consecutive months of real annual contractions. Finance official Édgar Amador Zamora acknowledged the lag in ISR revenue, particularly from legal entities, though he stated the government remains on track regarding the programmed fiscal deficit.