The tax burden on labour income is expressed by the tax wedge, which is a measure of the net tax burden on labour income borne by the employee and the employer.
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Mexico had the 33rd lowest tax wedge among the 35 OECD member countries in 2016. The country occupied the same position in 2015. The average single worker in Mexico faced a tax wedge of 20.1% in 2016 compared with the OECD average of 36.0%.
The OECD's Integrity Review of Mexico is one of the first peer reviews to apply the new 2017 Recommendation of the Council on Public Integrity. It assesses (i) the coherence and comprehensiveness of the evolving public integrity system; (ii) the extent to which Mexico’s new reforms cultivate a culture of integrity across the public sector; and (iii) the effectiveness of increasingly stringent accountability mechanisms. In addition, the Review includes a sectoral focus on public procurement, one of the largest areas of government spending in the country and is considered a high-risk government activity for fraud and corruption. The Review provides several proposals for strengthening institutional arrangements and improving vertical and horizontal co-ordination, closing remaining gaps in various existing legal/policy frameworks, instilling integrity values and ensuring the sustainability of reforms.
These country specific notes provide figures and commentary from the Taxation and Skills publication that examines how tax policy can encourage skills development in OECD countries.
This first review of Mexico’s energy policies by the International Energy Agency comes at a momentous time for the country’s energy sector. The broad-based Energy Reform, beginning with the Constitutional changes of December 2013, has continued at a steady and impressive pace. Its reach and scope amounts to one of the most ambitious energy system transformations in decades. The IEA applauds the government of Mexico for the progress made to date.
Starting from a largely closed and monopoly-driven energy market, the reform has taken concrete steps to harness market forces to attract investments and increase production while ensuring transparency and rule of law, improving energy security and strengthening the environmental sustainability of the energy sector.
Some policy areas, such as promoting competition and redesigning emergency preparedness, will have to remain a priority. The transition to open energy markets should continue in a transparent manner, and with regulatory certainty. The new roles and responsibilities for the public and private entities, in particular for energy supply emergencies and energy data collection, should be defined well. It is also critical to ensure sufficient resources for the several new or strengthened regulatory authorities.
For the long term, as Mexico’s population, cities and economy are projected to grow strongly, a cross-sectoral approach is required to limit the increase in energy demand and energy-related greenhouse gas emissions. This review analyses the energy policy challenges facing Mexico and provides recommendations for further policy improvements. It is intended to help guide the country towards a more secure, sustainable and affordable energy future.
This multi-year project aims to improve the competitiveness of the Mexican economy by reforming and modifying the regulatory and institutional framework to support higher levels of investment, employment and growth.
As “market referees”, regulators contribute to the delivery of essential public utilities. The internal and external governance of regulatory agencies are essential to determining how regulators and the sectors they oversee perform. The OECD has developed an innovative framework that looks at the institutions, processes and practices that can enhance regulators’ performance. In this report, the framework is applied to the external governance of Mexico’s energy sector and its three regulatory bodies, the Agency for Safety, Energy and Environment (ASEA), the National Hydrocarbons Commissions (CNH) and the Energy Regulatory Commission (CRE), following a structural reform of the sector and its regulatory institutions. The review offers insights into the progress and challenges in the implementation of the reform, highlighting the importance of structured co-ordination and accountability mechanisms based on a common strategic agenda, alignment of processes for good regulatory outcomes as well as sufficient operational flexibility. The report is complemented by forthcoming reviews of the internal governance arrangements of the three regulatory agencies, constituting a comprehensive body of work on the regulatory governance of Mexico’s energy sector.
The Mexico Tourism Policy Review provides an assessment of tourism-related policies, programmes and plans to support sustainable tourism development in Mexico. Policy recommendations focus on priority areas to help strengthen Mexico's tourism sector and take advantage of opportunities with strong potential for economic growth, investment and development, notably in the following areas: policy-making environment and governance arrangements; transport, mobility and connectivity for visitor travel; inclusive tourism growth, destination development and product and regional diversification; and investment and SME financing.
This report presents the findings and recommendations of the OECD review of Mexico’s national auditing system, with a focus on the Auditoria Superior de la Federación (ASF), the supreme audit institution. Reforms in Mexico have revamped the country’s institutional architecture and created several systems for strengthening accountability, integrity and transparency. The report highlights strategic considerations for the national auditing system and the ASF, examines the national and subnational dimensions of auditing in Mexico, and suggests ways for the ASF to enhance the impact and relevance of its work.
Este reporte analiza la efectividad e integridad del sistema completo de contrataciones públicas de PEMEX, identificando una serie de acciones de mejora. Un sistema de contrataciones públicas de clase mundial puede ayudar a PEMEX no solo a lograr valor por el dinero de manera sostenida, sino también apoyar otros objetivos de política pública social y ambiental en México.