translated from Spanish: Morena proposes 7% tax on services such as Netflix and Disney +

The fraction of Morena in the Chamber of Deputies proposed a tax of 7% in addition to the consumption of audiovisual content of foreign companies, some better known for their streaming service.
This initiative involves an amendment to the Excise Tax on Production and Services Act (IEPS), and aims to “expand and diversify the state’s sources of income in a context where additional resources are required”.
During tuesday’s regular session, Deputy Reyna Celeste Ascencio Ortega, a member of the Morena Parliamentary Group, explained adding the tax to platforms such as Apple Tv, Disney+, Hulu, Netflix, Roku, among others.
“By having a strong economic structure and predictable demand elasticity, the imposition of a levy on their consumption will hardly affect users or deprive them of acquiring such a service.”
In addition, it intends to oblige foreign companies to establish an address in national territory, with the aim of providing a place where consumers can file complaints and complaints for the services.
It noted that large platforms did not make physical investments in the countries where they operate, but only transmitted data over the public telecommunications networks of telephony and internet operators.
“That is, they are ‘mounted’ on these networks, but do not invest in their installation and deployment, this creates economic distortions and can eventually involve a saturation of telecommunications networks.”
You may be interested: What is decision fatigue, the great challenge of streaming platforms so as not to lose consumers
Foreign audiovisual service companies that do not have an establishment in Mexico will have to pay an additional 15% fee, he added.
To ensure that the additional tax on the consumption of the platforms is met, it was also proposed that the collection be withheld through the payment system. Understanding credit or debit cards, and prepaid services. 
The proposal suggests that at least 40 per cent of what is intended with this addition should be used for social coverage programmes in telecommunications in remote rural and indigenous communities.
“On the occasion of the above, it can be said that the proposed tax would have a growing tax base, which is favorable for public finances, since subscribers of audiovisual content over the internet to these foreign platforms have an accelerated growth rate, according to the consultancy Dataxis growth can be 50% per year.”
There is a trend in the world in the sense of imposing regulations and taxes on large technology platforms, Ascencio Ortega justified.
“In short, it is a draft initiative of equity for domestic production, of protecting users of these services and of ensuring better economic conditions for the State”.
What we do at Animal Politics requires professional journalists, teamwork, dialogue with readers and something very important: independence. You can help us keep going. Be part of the team.
Subscribe to Animal Politics, receive benefits and support free journalism.#YoSoyAnimal

Original source in Spanish