Mexico VAT revenue offsets ISR shortfall, fiscal sustainability questioned

Mexican tax revenue from VAT (IVA) is compensating for a decline in income tax (ISR) collections, according to analyst Víctor Piz. The shift raises concerns about fiscal sustainability and the quality of revenue composition, as reliance on consumption taxes may signal weaker corporate profitability. The development is part of an ongoing fiscal trend, with implications for Mexico's public finances and market confidence.