To fund a historic expansion of social welfare programs in 2026, the Mexican Congress last year approved a new tax strategy focused on enforcement and selective tax hikes. The plan avoids broad reform and increased personal taxes, instead targeting fraud, digital platforms and specific “harmful” goods to generate the revenue needed to cover the rising costs of pensions, youth scholarships and other benefits (see story above).
A central goal is to combat the multi-billion peso problem of fake electronic invoices (CFDIs), which are used to fraudulently reduce tax bills. The Tax Administration Service (SAT) now has expedited powers to audit and immediately suspend a company’s ability to issue invoices if fraud is suspected. Issuing or using false invoices is now explicitly classified as a serious crime that can lead to prison.
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