Name of Instrument
Mexico carbon tax
Carbon tax
Implemented
Mexico
Set price
The price is set by the Government
CO2
Coal; Diesel; Gasoline; Kerosene; Other oil products (fuel oil, coke, crude oil, etc); LPG; Jet fuel
Upstream
Yes, unlimited
Covered Sectors
- Covered
- In principle
Description
The Mexican carbon tax is an excise tax under the special tax on production and services (Ley del Impuesto Especial sobre Producción y Servicios). The tax applies to the sale throughout the national territory or the import of fossil fuels, with the exemption of natural gas. It is not a tax on the full carbon content of fuels, but on the additional CO2 emission content compared to natural gas.
Taxpayers can choose to pay this tax through the delivery of carbon credits, when they originate from projects developed in Mexico and endorsed by UNFCCC.
Revenues are allocated to the countryâs general budget and no specific uses are defined
Recent Developments
0
Coverage
The Mexican carbon tax applies to CO2 emissions from all sectors. The tax covers all fossil fuels except natural gas.
Pricing and allocation approaches
Set price
Compliance Approaches
Monthly
Relation to other compliance CPIs
0
Covered Emissions
Price range:
in 2023
Indicates instruments with multiple price levels. Only the main rate is shown for these instruments. Data last updated on 1 April 2023
