MEXICO CITY Aug 15 State oil monopoly Pemex
would pay income tax on exploration and extraction of
oil and gas under new fiscal rules in the government's proposed
energy sector overhaul, Finance Minister Luis Videgaray said in
a newspaper column on Thursday.
The proposal unveiled by President Enrique Pena Nieto on
Monday calls for the government to open the oil sector to allow
private companies to share profits, but not have a stake in
crude as many companies had hoped.
The reform would ease the financial burden on Pemex,
lessening the amount used to prop up the government and using
the leftover money to reinvest in the company or to be paid out
as a dividend for the government to invest in public spending.
"Reinforcing the concept of treating Pemex like a company,
its hydrocarbon exploration and extraction activities will now
be subject to income tax," Videgaray wrote in the newspaper
He said Pemex would pay lower royalties than at present.
The energy proposal dovetails with a landmark fiscal reform
Videgaray is preparing to boost the tax take and wean the
government off dependence on Pemex revenues, which fund a third
of the budget.
Videgaray said the changes would bring Pemex into line with
rules that govern other state-run oil companies like those in
Brazil and Colombia, which have both successfully changed their
lumbering oil monopolies.