Special Tax Law on Production and Services (carbon tax)
The 2012 amendments to the Special Tax Law introduced Mexico’s carbon tax. It covers fossil fuel sales and imports by manufacturers, producers, and importers and is capped at 3% of the sales price of the fuel. Rather than imposing a levy on the full carbon content of fuels, it taxes the additional amount of emissions that are generated compared to if natural gas (not currently subject to tax) was used instead. Companies may also choose to pay the tax with credits from local CDM projects, which support the development of carbon trading schemes within Mexico.
