Digital industry opposes taxing Netflix and other platforms

Members of the digital industry in Mexico have expressed opposition to the project that seeks to apply a 3% tax on digital services such as Netflix, Facebook, Uber, Mercado Libre and Spotify, among others.
This is because the party of the Democratic Revolution (PRD) presented in the Chamber of Deputies a draft decree proposal to expand the 3% Digital Services Tax.
“We do not support an initiative of this nature as we have not supported similar initiatives like the IEPS,” said Julio Cesar Vega, director of the Internet.MX association, El Universal reported. The executive refers to the Special Tax on Production and Services (IEPS in Spanish), which applies to fixed and mobile telephony, and pay TV services.
According to Vega, the Mexican digital ecosystem is in a state of maturity, not consolidated, and therefore should not accept this type of tax burden.
The president of the Mexican Chamber of Electronics, Telecommunications and Information Technologies (Canieti), Mario de la Cruz, said that they will evaluate the project. “All companies with operations in Mexico pay taxes, and generating an additional burden on digital services is in contradiction to having universal access contemplated in the Constitution,” he said.
During the recent edition of NexTV Series Mexico & Central America, several pay TV operators called for a regulation of OTT services, so they start paying taxes in the country.