AUTONOMOUS UNIVERSITY OF ZACATECAS

“FRANCISO GARCÍA SALINAS”

ACCOUNTING AND ADMINISTRATION ACADEMIC UNIT

MASTER IN TAX

HISTORY OF TAXES IN MEXICO

Zacatecas, Zac., September 17, 2018.

THE HISTORY OF TAXES IN MEXICO

The Pre-Hispanic and Colonial Era.

During pre-Hispanic times, the main form of taxation was represented by tribute, which had
its origin and foundation in the creation of the trades and services necessary for
collective existence. These taxes were paid mostly by the lower classes (producing class
made up of artisans, farmers and merchants), which served to support the ruling classes
(rulers, priests and warriors).

The tribute was received mainly by the universal lords, the particular lords, the nobles, the
communities (composed of major and minor neighborhoods and whose tribute was destined
to support the magistrates and officials), the temples and the militia.

The tribute consisted of material benefits, which depended on the activity to which the
individual was dedicated, and personal benefits such as services or work. These were
fundamentally collective in nature (that is, by towns, neighborhoods or groups) and were
granted mainly by farmers. Among the main products that the farmers gave in tribute
were corn, beans, cocoa, cotton and other products of the land, as well as fruits, fish and
other animals.

An element that should not be ignored is that among the indigenous people there never
existed a uniform tax system, since sometimes a certain amount could be required of them
and other times a different one, just as between different or similar communities the
amounts demanded were different, apparently The only thing that was considered based on
the tribute was the possibility of giving what was requested. When the Spanish conquest
arrived, the pre-Hispanic tribute did not undergo major modifications, rather it gradually
adapted to European standards, in such a way that during the 16th century it would continue
to maintain its main characteristics, consisting of material benefits and services, as well as
preserving the indigenous terms of eighty days, half a year, etc.

During the Era of Conquest, new taxes were established, these being of two types:

a) Direct:

 Foreign currency, capitation that the king collected in recognition of lordship.

 Aljamas or morerías, capitations that weighed on the Jews and the Moors in
Castilian territory.
 Fonsadera, contribution for war expenses paid by those obliged to provide it for the
military exemption.
 Others of less importance, such as the yantares, the facendera, the anubda and the
queen's chapín.
b) Indirect:

 The checkpoint,
 The almojarifazgo, a tribute that was levied on goods that passed from Castile to
other kingdoms or from these to Castile.
 Those of portazgo, pontazgo and barcaje, and
 Others are milder, such as montazgo. The offal, etc.

The alcabala was one of the most important and oldest figures of the hacienda of New
Spain. This was applied from the year 1571 and lasted until the first years of independent
life of Mexico; Even after the Revolution of 1910-17, excise practices persisted for the
transit of goods between states of the Federation.

The alcabala was a real income that was charged on the value of all things , furniture,
real estate and livestock that were sold or exchanged, that is, it was a tax that was levied
on all commercial transactions and that was transferable to the final buyer, for
Therefore it is considered an indirect tax.

There were three systems in the collection of alcabalas:

 Direct administration by royal officials.
 Leasing to individuals.
 Heading by certain organizations, such as city councils and business consulates.

Among the goods that had to pay alcabala were all sales or barter, no matter if it was the
first sale, second, third, etc., each and every one of them had to pay it. This gives us an idea
of how unfair this tax is for the poorest classes. Starting in 1571, exemptions began to be
granted on certain items of mass consumption, such as corn or other grains and seeds, as
well as all those merchandise whose overall value was less than a certain amount. For the
rest of the goods, alcabala was paid, generally being six percent.

The alcabala was a mandatory payment for all types of people, however, there were also
certain exceptions, such as widows and orphans who worked for their own support, as well
as the weavers of the Tepeaca district, considering that they were very poor. . Although
there was a fixed rate for alcabala, in most cases the works were arranged, that is, a fixed
amount was paid annually that reflected the estimated value of the annual production
marketed. As of the ruling of October 8, 1780, the general tax rate was raised to eight
percent.
The Tax System of Independent Mexico.

When Mexico achieved its independence, its tax system was in fact very similar to that
which governed New Spain. In this way the tobacconists continued to operate. This type of
imposition favored the rich classes rather than the poor (the majority), because the latter
held power and could not see their economic interests disrupted. Basically during the 19th
century there were taxes that only affected certain industries such as spinning and weaving,
tobacco and alcohol. On the other hand, there were extensive taxes that levied foreign trade
and internal trade through alcabalas.
Mexico experienced a period of great political, economic and social disorder in those first
years of independent life, which in turn would cause great fiscal disorder. In 1846,
President Valentín Gómez Farías issued a decree by which he ordered the suppression of
alcabalas, because they had a negative effect on the commercial, agricultural and
manufacturing industry. Since the promulgation of the Constitution of 1857, article 124
established the suppression of the alcabalas. Subsequently, the Juarista fiscal policy was
based on introducing gradual reforms that strengthened the country's economy based on a
clearly liberal Constitution.

Among the main fiscal actions carried out in this period are:

Transforming the old tax on stamped paper into mobile stamps (stamp), tariffs that made
foreign items more expensive were abolished and taxes on exports that damaged national
production were eliminated.

In relation to mining: Free export of silver paste, free export of stone ore and dust,
recovery by the government of the mint houses given for lease, suppression of taxes on
mining and establishment of a single tax on mining profits.

The implementation of the ISR in Mexico as a result of the influence of socialist ideas
born from the Revolution comes from a slow process that originates in 1810.

However, Matías Romero can be considered the precursor of the ISR, arguing that “a single
general direct contribution, imposed on real property and movable capital, would be more
equitable and would produce more resources for the public treasury than those now
charged.” However, it was not possible to implement the ISR in this period because the
veto of the clergy and the semi-feudal aristocracy had only achieved the strengthening of
the petite bourgeoisie, and they of course adopted the tax system according to their
interests. The advent of the Porfirio Díaz regime ruined the social ideas that had been
generated previously, so the Minister of Finance Ives Limantour opted instead for a
regressive tax policy.

Conclusions.

From the above it can be seen that the first manifestation of taxation in Mexico arose in the
time of the Aztecs, with King Azcapotzalco who “ asked them for tribute in exchange
for benefits in his community” , which is where you see its origin, I think because for the
first time in Articles 31 section IV of the CPEUM , leaving the beginning of the tribute
records at that time called Tequiamal which means (Tribute or taxes).

The first collectors were known by the name of Calpixqueh (Mayordomo or foreman of the
Haciendas, “foreman in charge of the government of the Indians and the collection of taxes
by the encomendadores) and the way to identify them was by carrying a staff in one hand
and a fan in the other.

There were several types of tributes that were given depending on the occasion, there were
war tributes, seasonal religious tributes, etc. The subject peoples had to pay two types of
taxes, which were in kind or merchandise and taxes in special services.

Upon the arrival of the Spanish, and after the conquest of Mexico, Hernán Cortés adopted
the tax system of the Aztec people, modifying the way of collection by changing the taxes
of flowers and animals for stones and jewels . Cortés' first step was to prepare a list of
fiscal documents, and he appointed a minister, a treasurer and several accountants in charge
of the collection and custody of the Quinto Real (the Taxes) , and it is here that the
Secretary of the Treasury appears for the first time. and Public Credit in Mexico.

Likewise, in 1573 the Alcabala was implemented, which means (Ancient Tribute that the
Seller Paid to the Treasury in a Purchase and Sale), which is the most remote origin or
antecedent of the (VAT).

In the same way, the toll for the right of passage arose, which is currently equated with the
amounts paid at the booths, Articles 11, section IV of the CPEUM , creating a fiscal legal
system called Tithe-mining in which the indigenous people paid with I worked in mines,
and the exploitation of the mines was for the State.
Starting in 1810, the tax system was complemented by the tariff for the government of
maritime customs, these being the first import and export tariffs published in Mexico, thus
Article 131 of the CPEUM emerged.

Now the fiscal weakness of the federal government of Antonio López de Santa Anna and
seeing that public finances were not completely healthy, they decided to establish the
collection of a tribute of one Real for each door, four cents for each window, two pesos
for each robust horse, one peso for the skinny horses and one peso for each dog , this is
the background of the proposed law reform, such as in our days the reform to the “Treasury
Law of the State of Zacatecas” with the emergence of new contributions among which are
the much mentioned “Ecological Taxes and the Additional Tax on Infrastructure”.

It creates co-responsibility in public finances between the Federation and the State,
establishing that part of the proceeds would remain in the hands of the State and a part
would be integrated into the income of the Federation, the first Administrative
Collaboration Agreements arise.

In 1917 and 1935, various taxes were implemented, such as services for the use of the
railway, special taxes on the export of oil and derivatives, for consumption of electricity,
telephone, stamps, closed bottles, notices and advertisements. Simultaneously, the income
tax and the gasoline consumption tax are increased. However, such measures caused social
benefits, with the implementation of services such as civil service, retirement due to
advanced age with pension and in general. Increasing taxes on items harmful to health and
taxing luxury items.

Many years have passed before the government today has fiscal laws that allow it to have
resources with which to build public works and provide services to society.

Taxes are now a collaboration so that Mexico has schools, hospitals, hygiene, roads and
public services. The great challenge is that these are equitable and that their destination is
transparent for the society that provides these resources.

Information sources:

o Bonilla, Ignacio; “Mexican tax system 1990-2000. Policies necessary to achieve

equity. (The tax reform of the present administration).” Thesis. UNAM, 2002
o Eslava, Susana, “The Mexican tax system. Tax policy of the nineties.” UAM Thesis,
2003
o Political Constitution of the United Mexican States
o History of Taxes by Pedro Lara V.