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Mexican Customs Shake-Up Aims To Boost VAT Collection

by Mike Godfrey, Tax-News.com, Washington

19 August 2009

It emerged at the weekend that the Mexican authorities have launched a massive operation designed to clean up the country's customs system, thereby increasing the collection of VAT, and restricting the entry and exit of drugs, guns, and counterfeit and other illegal goods.

Around 1,400 highly trained and vetted replacement officers have been installed at checkpoints and airports throughout Mexico after the contracts for previous customs staff had expired, as part of an effort to flush out corruption within the tax agency.

Speaking to the media on behalf of the Customs Authority, spokesman Pedro Canabal stated that: "This change is part of our response to new demands in the fight against contraband."

Canabal also confirmed that the broad-reaching modernization is expected to boost VAT collection, with recent estimates suggesting that in the region of 40% of value-added tax revenue is collected by customs officers.

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