Mexican Government Drafting Bill to Reduce Tax Burden on Pemex

Mexico’s government will send a bill to Congress in September to improve state-owned Petroleos Mexicanos’s capacity to invest in projects by reducing the oil company’s tax burden, Finance Minister Luis Videgaray said.

The bill, which comes as the government tries to give other companies access to Mexican oilfields, would lower Pemex’s royalties and license fees, Videgaray wrote in an article posted on the ministry website today. To partially compensate for lower fees, Pemex would start paying income taxes on its drilling and exploration operations, he said.