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Pemex Gets New Tax Benefits of as Much as $3.6 Billion

  • Fiscal stimulus of 14% will be applied to tax on hydrocarbons
  • Pemex’s debt of $110 billion is the highest of any oil company
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Photographer: Mauricio Palos/Bloomberg
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Mexico President Andres Manuel Lopez Obrador announced new tax benefits for Pemex as the beleaguered state oil company seeks to reverse long-term production declines and reduce debt.

Petroleos Mexicanos will get an additional 14% credit stimulus to apply to the taxes it pays on hydrocarbons capped at 73.3 billion pesos ($3.6 billion) for this year, according to a presidential decree. The new benefit comes in addition to previous measures that reduced Pemex’s profit-sharing duty from 65%, to 58% in 2020 and 54% in 2021, respectively.