Statement On Proposed Digital Tax Regime In Mexico

Washington, DC – Internet Association Director, Trade Policy Jordan Haas released the following statement on Mexico’s proposed digital taxation regime:

“Mexico’s proposed discriminatory tax regime would disproportionately impact U.S. companies and set a dangerous global precedent. This proposed tax change has the potential to threaten compliance with USMCA and would harm American investment in the Mexican digital economy.

“Of particular concern is the ‘kill switch’ provision of the proposal, which would punish companies for noncompliance by blocking entire sites and services. This provision is especially troubling and potentially violates free trade principles and agreements.”

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IA also sent a letter with eight other trade associations to the United States Trade Representative expressing concerns with the tax. To read the full letter, click here.