Implementation of the New Tax
As part of efforts to combat climate change and promote sustainability, a new Tax on Emissions of Pollutants to the Atmosphere has been implemented in the Fiscal Code of Mexico City. This tax, contained in the newly added Chapter VII TER, aims to discourage greenhouse gas emissions, promote environmental responsibility, and generate resources for environmental and animal welfare projects.
Implementation of the New Ecological Tax in Mexico City
As part of efforts to combat climate change and promote sustainability, a new Tax on Emissions of Pollutants to the Atmosphere has been implemented in the Fiscal Code of Mexico City. This tax, contained in the newly added Chapter VII TER, aims to discourage greenhouse gas emissions, promote environmental responsibility, and generate resources for environmental and animal welfare projects.
1. What is the new ecological tax?
The ecological tax, established in Article 164 TER 1, levies emissions of pollutants such as carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O) that exceed one ton of carbon dioxide equivalent (t CO2e) per month. This tax applies exclusively to emissions generated by fixed sources, defined as permanent installations intended for industrial, commercial, service processes, or any other activity that emits pollutants into the atmosphere.
2. Calculation of the tax and applicable rates
The amount of the tax will be determined considering the quantity of emissions expressed in t CO2e, using the equivalence factors established for each pollutant gas. The applicable rate will be $58.00 pesos per ton of CO2e, also considering fractions of a ton. To calculate emissions, the methodology established in the Operating or Functioning Licenses and the Annual or Integral Operating Certificates, as applicable to the jurisdiction, established by the competent environmental authority, which will also be provided in the general rules issued by the Secretariat, will be used.
3. Declaration and compliance
Taxpayers obliged to pay this tax must comply with the following provisions:
• Declaration and payment: The tax must be declared and settled no later than the 17th day of the month following the accrual (the tax will accrue in cases where monthly emissions of pollutants to the atmosphere are equal to or exceed one ton).
• Pollutant Emissions Registry: Taxpayers must keep a detailed record of emissions generated by their fixed sources.
• Presentation of registration proof: It will be mandatory to have proof of registration with the competent authority.
The Secretariat of Administration and Finance will issue general rules to facilitate compliance with these obligations.
4. Linkage with the General Law on Climate Change
In matters not provided for in Chapter VII TER, the General Law on Climate Change will apply subsidiarily, as long as its provisions do not contravene the nature of the Fiscal Code. This reinforces the legal framework for implementing climate change mitigation and adaptation measures.
5. Use of collected resources
The revenues generated by the ecological tax will be exclusively allocated to:
• Actions to ensure a healthy environment.
• Animal welfare projects.