Decree Issued Amending Tax Benefits for the Cargo and Passenger Transportation Industry

May 14, 2008
Decree Issued Amending Tax Benefits for the Cargo and Passenger Transportation Industry

As part of the measures implemented by the Mexican federal government in the cargo and passenger transportation sector, as well as Official Mexican NormNOM-012-SCT-2-2008 recently published in the Official Journal of the Federation and discussed in the April edition of the CCN Mexico Report titled, “NewMexican Regulation (NOM) on Maximum Weights and Measures for Trucks and Buses,” various decrees offering tax benefits to cargo and passengertransportation companies have been published in the Official Journal of the Federation. Substituting new vehicles for older equipment should have a direct impacton damages caused to Mexican highway infrastructure, and the new fiscal incentives consist of tax credits equivalent to the lower amount of: (a) the price receivedfor selling used vehicles; (b) 15% of the price of a new vehicle, or (c) a specified amount in accordance with the type of vehicle being sold, which is given as anincentive to update Mexican fleets and improve compliance with the recently enacted Mexican Norm. In the Decree, published on March 4, 2008, requirementsfor applying for tax benefits were established based on the number of axels and minimum gross vehicular weight of the equipment involved. In studies performedby the Mexican Transportation Institute (Instituto Mexicano del Transporte at www.imt.mx) the results showing damages to Mexican highways based on thecombination of number of axels and gross vehicular weight can be seen.

Share this article: