The Chamber of Deputies lowered Pemex’s rate known as the Shared Profit Right (DUC) to 30%, from the current 40%, as part of the 2024 Income Law approved by lawmakers early Friday, among the trying to control the oil company’s growing debt.
The DUC is a payment that Pemex must make to the treasury for every barrel it sells and the resources go into the Mexican Petroleum Fund, which was created as a result of the energy reform in 2013. It is a public trust managed by Banxico as trustee. and of that the Treasury is a trustee.
The fund has the obligation to receive resources from Pemex and other companies that manage the exploration and extraction of hydrocarbons and then transfer them to the State in terms and amounts determined by the Treasury.
The Pemex rate was gradually lowered during the administration of President Andrés Manuel López Obrador from a maximum of 65%.
The bill, which was approved after a marathon overnight session, still needs to be approved by the Senate.
Morena even cut the tax burden for Pemex
The original proposal, which was sent to Congress by the Treasury, proposed a reduction of 35%, although Morena legislators voted in favor of a larger cut.
Pemex is the world’s most indebted oil company, facing about $110.5 billion in debt and heavy write-downs by 2024.
Andrés Manuel López Obrador said last week that he wants to further reduce Pemex’s tax burden.
The president argues that Pemex’s heavy tax burden is hindering its ability to make key investments in exploration and production, and that his government is feeding the oil company millions of dollars in subsidies. money injection and tax deductions with the promise of bailing them out.
Read: Pemex becomes a star in the production of new developments
With information from Reuters
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