Morena proposes a 7% tax on services like Netflix and Disney +

Morena’s part of the House of Representatives proposed an additional 7% tax on consumption of audiovisual content from foreign companies, some of which are known to serve them. flow.

This initiative includes the amendment of the Special Tax Law on Production and Services (IEPS), and aims to “expand and diversify the state’s sources of income in a context that requires additional resources.”

During the regular session on Tuesday, Rep. Rina Celeste Asensio Ortega, a member of the Morena parliamentary group, stated that the tax would be added to platforms such as CamelAnd the Disney +And the HuluAnd the NetflixAnd the Year, Among other things.

“By having a strong economic structure and predictable demand flexibility, imposing a tax on its consumption will not affect or deprive users of this service.”

In addition, it aims to compel foreign companies to establish a home on the national territory, so that there is a place where consumers can file complaints and claims for services.

He pointed out that the large platforms do not make material investments in the countries in which they operate, but only transmit data through the public telecommunications networks of telephone and Internet operators.

In other words, they are “installed” on these networks, but they are not invested in their installation and deployment, and this generates economic distortions and may ultimately mean saturation of communication networks. “

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He added that foreign audiovisual services companies that do not have an establishment in Mexico must pay an additional fee of 15 percent.

To ensure compliance with the excise tax on consumption of platforms, it has also been proposed to withhold collection through the payment system. They are through these credit or debit cards and prepaid services.

The proposal proposes that at least 40 percent of what is collected with this addition be used for telecommunications social coverage programs in remote rural and indigenous communities.

“ Given the above, it can be emphasized that the proposed tax will have a growing tax base, which is favorable for public finances, given that the online audiovisual content subscribers of these foreign platforms have an accelerated growth rate, according to Dataxis Consultancy, the growth could reach 50 percent annually. “

There is a trend in the world regarding regulation and taxation of large technology platforms, justified by Ascencio Ortega.

“In short, it is an INSAF initiative for national production, to protect the users of these services and to ensure better economic conditions for the state.”