La Generalización del Impuesto al Valor Agregado: ¿Una opción para México?/VAT Generalization: An Option for Mexico?

Given poor tax collection in Mexico, which registers, on average, between 10 and 11% of GDP over the last 10 years while spending hovers around 20%, fiscal reform lias been a recurring theme in public discussions. Given this context, the generalization of VAT looms as an important option for the country. Nonetheless, its viability lias been caught in a discussion tinged with dogmatic hues. This paper presents some important elements that should be taken into account in the discussion regarding a generalization of said tax. If the argument for not generalizing this tax is hinged on the tax's regressive turn, then one must clarity that current tax arrangements create a situation that is more unequal given who the beneficiaries are. [PUBLICATION ABSTRACT]