By Octavio de la Torre
President of Concanaco Servytur
In a challenging economic environment, states face an increasing need to optimize resources while ensuring essential services for the population. The recent approval of the 2025 Federal Revenue and Expenditure Law raises concerns about its impact on federal contributions.
Projected reductions have led several states to announce increases in local taxes to balance their budgets. However, beyond the figures, what is urgently needed is a comprehensive discussion that neither compromises business competitiveness nor citizens’ well-being.
A Call for Constructive Dialogue
As President of the Confederación de Cámaras Nacionales de Comercio, Servicios y Turismo de los Estados Unidos Mexicanos –Confederation of National Chambers of Commerce, Services, and Tourism– (Concanaco Servytur) I reaffirm that fiscal decisions must be built on the foundation of dialogue.
“It is essential that state authorities convene inclusive working groups where chambers of commerce, industry-specific associations, employer and labor unions, as well as civil society, actively participate. Only through such inclusive discussions can we develop planned and consensus-driven measures that benefit everyone” I recently emphasized.
Tax increases should never be a standalone solution. Local governments must commit to administrative efficiency, reduce underspending, and combat corruption and informality. These actions not only optimize available resources but also build trust and stability in both family and business ecosystems.
Fiscal Challenges for Businesses
Micro, small, and medium-sized enterprises (mipymes, as we know it in Mexico), which account for 98% of Mexico’s business sector, face the most severe impact from tax increases. Despite contributing 66% of GDP and generating seven out of ten formal jobs, these businesses often operate with limited margins, meaning any increase in costs could jeopardize their survival.
Our organization, the oldest and most representative of its kind, has proposed concrete measures to mitigate these risks:
• Training and Digitalization: Transitioning to technology is not just a strategy for efficiency but a necessity to remain competitive in global markets.
• Administrative Simplification: Reducing bureaucratic processes and excessive regulations fosters a more agile environment for mipymes.
• Support for Local Consumption: Revaluing locally produced goods strengthens regional economies.
• Combatting Informal Employment and Corruption: Strengthening transparency and compliance is essential.
• Improved Legal and Public Security: Clear legal frameworks ensure business stability and long-term growth.
Growth and Revenue Perspectives
The recent increase in the minimum wage presents a mixed outlook. On the one hand, higher wages are expected to boost tax revenues such as income tax (ISR) and value-added tax (IVA, as we call it in Mexico) through increased purchasing power. However, for this to be sustainable, economic growth must exceed current estimates. This requires public policies that incentivize investment and ensure legal certainty.
The Power of Collective Effort
At Concanaco Servytur, we work closely with 257 local chambers and the 4.8 million businesses we represent. Our commitment is clear: fostering inclusive and sustainable economic growth while prioritizing collaboration among governments, entrepreneurs, and society.
Only through mutual understanding can we achieve balanced solutions that promote both social welfare and business competitiveness.
The true strength of our organization lies in the leadership of its community representatives. This principle reminds us that challenges should not cause division but instead inspire constructive dialogue –the cornerstone for building a stronger country.
For more political, business, technological and cultural information visit all of our Mundo Ejecutivo platforms.
