Leading entities in IEPS collection are not the ones that receive the most shares

An analysis by the Center for Public Finance Studies revealed a discrepancy between the states that collect the most Special Tax on Production and Services (IEPS) on gasoline and diesel and those that receive the largest shares of the tax. Between 2018 and 2023, IEPS collections on gasoline and diesel were concentrated in Mexico City with 41.6% of the total; Veracruz with 26.6%; and Tamaulipas with 10.6%.

The study reveals that while the State of Mexico accounts for 16.6% of the country's vehicles in circulation and Jalisco for 7.9%, these states recorded an average of 0.0% of IEPS (Special Tax on Fuels). This disparity is explained because the tax is calculated primarily based on the tax domicile of companies—where oil companies and marketing companies are registered, many of which are located in Mexico City, Veracruz, or Tamaulipas—and not on the location where the fuel is actually consumed. Thus, states with high vehicle demand are at a disadvantage, as they pay the same tax per liter, but the resources are not allocated proportionally to their actual consumption.

Transfers

Between 2018 and 2023, 142,894.8 million pesos were transferred to the federal entities for the IEPS (Financial Income Tax) on fuels, of which 116,912.2 million, equivalent to 82%, corresponded to ordinary shares (9/11 parts) and 25,982.6 million, the remaining 18%, to the Compensation Fund (Foco).

The resources collected are divided into two parts: 82% (9/11 parts) is distributed to all entities according to their actual consumption reported by Petróleos Mexicanos (Pemex) and permit holders, while the remaining 18% (2/11) forms the Compensation Fund (Foco), destined exclusively for the 10 entities with the lowest non-mining and non-oil GDP per capita.

"However, during this period, the same states did not always have the lowest levels. Therefore, the funds were distributed to a total of 13 states, nine of which received funds throughout the entire period," the analysis states.

The Foco (Regulation of Public Procurement) was created in 2007 as a mechanism to offset the projected decline in oil revenues and strengthen state finances. It also mandated allocating Foco resources exclusively to road infrastructure, water resources, urban mobility, and environmental protection.

However, in 2008, the Supreme Court of Justice of the Nation (SCJN) declared this provision unconstitutional, considering that it violated the financial autonomy of states and municipalities, transforming the Foco into a freely available fund. During the period analyzed, the main recipients were Chiapas, with 4.051 billion pesos; Guerrero, with 3.103 billion; and Oaxaca, with 3.026 billion, according to data from the CEFP.

The analysis of the 2018-2023 period reveals a negative performance nationwide, with an average 3.1% decrease in resources transferred through the Foco (Resources Transfer Program). While states such as Zacatecas, Oaxaca, the State of Mexico, and Hidalgo faced sustained reductions, others experienced exceptional growth, such as Veracruz, Nayarit, Michoacán, and Morelos, which in some years saw increases exceeding 900%, without justification indicated in the study.

During the five-year period analyzed, 116,912.2 million pesos were allocated in participations, with the State of Mexico as the main beneficiary with 12,191.9 million, followed by Jalisco with 7,954.7 million, and Veracruz with 6,925.3 million. Mexico City, despite accounting for 41.6% of the initial revenue, received less in participations, amounting to 6,468.1 million.

The states that received the least were Aguascalientes, with 1,080.4 million pesos in 2018 and 2023; Tlaxcala, with 1,078.1 million; and Campeche, with 1,115.3 million. Additionally, the pandemic severely impacted these transfers in 2020; their real value fell 22.6%, and although there was a 17.8% recovery in 2023, it was not enough to offset the accumulated reduction during the six-year term.

Recommendations

The Federal Revenue Law (LIF) estimated 473.578 billion pesos for 2025 in IEPS (tax-exempt income tax) on fuels, representing 66.3% of the total estimated tax. "In this context, it is important to analyze the tax revenue collected by state, as well as the amount distributed to them through federal contributions," the CEFP notes.