The gasoline subsidy will cost 30 thousand mp more in 2018

The Ministry of Finance and Public Credit provides that the subsidy for gasoline will cost 30 billion pesos more which spent in 2017, totaling 98 thousand 229 million pesos, which implies a 42% increase due to the rise in the price of oil and the dollar .

"The increase in budget expenditures observed in IEPS fiscal stimuli of motor fuels are due to the fact that, despite the same pattern used to amortize changes in fuel reference prices, in 2018 the price of crude oil and the exchange rate (which are the determinants of the price of references for gasoline and diesel) were higher than what was observed in 2017 ", Tax Expenditure Budget 2018. [19659005] Between 30 and 40 percent of the total price of one liter of g Asolina corresponds to the special tax on production and services (IEPS) for gasoline and fuels. increase in the price of oil and the depreciation of the Mexican currency against the dollar, the government subsidizes part of the tax so that the pockets of the consumers are not affected.

The Mexican Institute of Public Accountants reported that On the other hand, the 2018 Fiscal Expenditure Budget states that in order not to apply the Value Added Tax (VAT) of 16 per cent on food and drugs, the liter of gasoline would be up to 39 per cent. 25 pesos without the government subsidy.

will cease to raise 250 billion pesos in 2019, this amount is estimated at 236 billion pesos for 2018.