Mexico, EU Hold Talks On Tax Policies For Social Cohesion

by Mike Godfrey, Tax-News.com, Washington

20 October 2009

As part of the Mexico-European Union 2007-2013 Technical Co-operation Program, the Mexican Foreign Ministry has held a seminar on tax policies for social cohesion.

The seminar was the first of seven dialogues between Mexican and EU public institutions, which address key issues regarding social cohesion including health, social security, coordination of social policies, and taxation.

The event was a meeting between Mexican institutions that formulate and implement tax policy and European experts to allow them to exchange experiences and best practices in formulating, implementing and administering tax policies with special emphasis on gender, and on vulnerable groups and their integration into society.

The seminar was chaired by Máximo Romero Jiménez, Director General of Technical and Scientific Cooperation of the Foreign Ministry’s International Economic Relations Unit; Olivier Levy, Head of the Cooperation Section of the European Commission delegation in Mexico; Enrique Magaña Méndez, head of the Taxation and Collections Unit of the Mexican Social Security Institute; and Rosa María Vega Peón, General Administrator of Tax Collections in Mexico.

During the seminar, the topic of harmonizing the information provided by taxpayers was discussed, as was the measurement and reduction of the cost of declaring one’s taxes and paying taxes and social contributions and improving the identification of collection risks.

The important role of taxation in strengthening social cohesion was mentioned, given that it is an instrument that provides the resources needed for social policies and expenditures. The need to reinforce taxation and to try to overcome the deficiencies or problems presented by its application, including low tax receipts, the small taxpayer base and tax evasion were also discussed. The Mexican and European experts agreed that tax collection could be strengthened by increasing the taxpayer base, encouraging voluntary compliance with tax requirements, and investigating more efficient tax collection.

The results will define the agenda of the second round of talks planned for late 2010.

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