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Impact on Society
22 February 2011
Analysing tax reforms in Mexico
Impact on Society
In 2010, the World Bank commissioned IFS Researchers to develop a micro-simulation model of the Mexican tax system (called MEXTAX) that could be used to analyse the distributional and revenue impact of real and hypothetical tax reforms. It has already been used to look at the impact of the 2010 tax reforms and to compare these reforms with the initial proposals of the Secretaría de Hacienda y Crédito Público (SHCP). In February 2011, IFS researchers travelled to Mexico and presented to academics, key civil servants and the vice Secretary of Finance both details of MEXTAX and its potential uses, as well as the results of the analysis of the 2010 reforms. The work was well received and the SHCP expressed their interest in using MEXTAX and the associated methodology in their own analysis of future tax reforms.
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