Business

Mexican President Pledges Unprecedented Tax Breaks For POC

Mexican President Andres Manuel Lopez Obrador pledged on Tuesday that state-owned oil company Pemex would be granted unprecedented tax breaks so that the company could boost its oil production.
Mexican President Andres Manuel Lopez Obrador pledged on Tuesday that state-owned oil company Pemex would be granted unprecedented tax breaks so that the company could boost its oil production.
“We will reduce the tax burden on Pemex in a way it has never been done before. It will mean fewer [financial] resources for the government but we are confident that we will be able to compensate for this shortage,” the president said at his daily press conference.
According to the president, the new measures would be announced in the coming days.
“We will leave Pemex enough resources so that we could restore oil production and increase it,” Lopez Obrador said.
In late January, the Mexican president said that Pemex had reached its best form in 30 years thanks to anti-corruption measures and that the company would maintain its oil output at 1.8 million barrels per day throughout the year, before boosting it up to 2 million barrels the next year.
Meanwhile, the company’s oil output has been dropping in recent years, with Pemex having accumulated around $107 billion in debts.
Over the past six years, the production slumped by almost 30 percent, falling by 7 percent last year alone.