Pemex tax relief proposal could reduce revenue for Mexican oil states

The Mexican Ministry of Finance (SHCP) is considering reducing the tax burden on Petróleos Mexicanos (Pemex) to improve the state-owned company's financial and operational stability. However, experts warn this move could reduce the resources available to oil-producing states.

Katherine Olvera, a researcher at the Center for Economic and Budgetary Research (CIEP), noted that tax relief for Pemex would impact transfers to the Mexican Petroleum Fund, which are distributed among states. This could specifically affect regions with high hydrocarbon production, such as Campeche, Tabasco, Tamaulipas, and Veracruz. A total tax waiver could result in a loss of 210.8 billion pesos by 2027, equivalent to approximately 0.5% of Mexico's GDP.