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Mexico City Bill Would Cut Payroll Tax for Firms Proving Environmental Gains

The proposal conditions tax relief on measurable results to deter greenwashing.

Overview

  • Morena deputy Pedro Haces Lago presented the initiative in plenary, with five co-signers, and it was sent to the joint Hacienda and Budget committees for review.
  • The draft would amend Article 277 of the Fiscal Code to link payroll-tax reductions to verified decreases in companies’ environmental impact.
  • Proposed tiers grant a 20% tax cut for a 30–44% impact reduction, 30% for 45–59%, and 40% for 60–100%.
  • If enacted, the city’s Environment Secretariat (Sedema) would have 180 days to design evaluation and verification mechanisms.
  • Qualifying outcomes cited include soil and water conservation, biodiversity protection, reduced water use, and carbon capture.