The Mexican government proposed to slash state-owned oil major Pemex’s tax burden in the finance ministry’s 2022 draft budget presented to Congress on Wednesday. The proposal involves cutting the profit sharing rate (DUC), which is effectively a tax paid to the government, to 40% for Pemex from 54% in 2021, 58% in 2020 and 65% in 2019. This comes amid President AMLO’s push to revive Pemex, which has been struggling with mounting debt. The draft budget also forecasts a growth rate of 4.1% for 2022 for the Mexican economy with the Finance Minister Rogelio Ramirez de la O stating that the budget would focus on the well-being of Mexicans, financial stability and support for regional development. He also reassured that new taxes will not be created.
Pemex’s Tax Burden to be Cut by Mexico Government
Pemex’s 5.95% 2031s have been trading higher this week, up over 2 points since Monday to 100.04 yielding 5.94%.
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