ABSTRACT
The current tax system prevailing in Mexico is the result of a long and unfinished process of reform. During the last 35 years, the tax system has been subject to substantial overhauls aimed at achieving efficiency, neutrality, competitiveness, and equity goals compatible with the development of the Mexican economy and the international economic setting. Even though some of these objectives have been accomplished, the tax ratio is still insufficient to meet the social and infrastructure needs at the onset of the twenty-first century. The purpose of this chapter is to present the underlining features of the tax reform process in Mexico during this period, the main components of the current tax system, and the reform agenda pending for the future. To give a broader perspective of this process, it will cover some of the main domestic and external circumstances surrounding each stage of the tax reform, and a comparative view with other Latin American countries.
