PEMEX

Documents reveal Pemex will get 7.3 billion usd in tax breaks

Mexico is seeking as much as 138.7 billion pesos ($7.3 billion) worth of tax breaks for Petroleos Mexicanos in 2020 and 2021, according to online reports.

The internal document detailed a tax relief of 138.7 billion pesos ($7.28 billion) over 2020 and 2021, saying the government would propose the changes on Sept. 8 when it presents its proposal for the 2020 budget.

Pemex said the tax reductions would be achieved by lowering the profit-sharing tax to 54% by 2021 from 65%. The tax relief would amount to 47.1 billion pesos in 2020 and 91.6 billion pesos in 2021.

The modification will be made gradually over the next few years, in such a way that it does not generate fiscal imbalances for the government, the text indicates.

Pemex is under the microscope of risk rating agencies due to its financial debt of 106.5 billion dollars and its recurrent negative cash flow, which could lead to the loss of its investment grade.

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