Mexico carbon tax

The Mexican carbon tax is an excise tax under the special tax on production and services (Ley del Impuesto Especial sobre Producción y Servicios). The tax applies to the sale throughout the national territory or the import of fossil fuels, with the exemption of natural gas. It is not a tax on the full carbon content of fuels, but on the additional CO2 emission content compared to natural gas.Taxpayers can choose to pay this tax through the delivery of carbon credits, when they originate from projects developed in Mexico and endorsed by UNFCCC.Revenues are allocated to the country’s general budget and no specific uses are defined. 

Source: World Bank Carbon Pricing Dashboard

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