Mexico's lower house moved to cut a profit sharing rate owed by state-owned oil giant Pemex to 30%, from its current 40%, as part of a sweeping 2024 tax bill passed by lawmakers early Friday morning, amid attempts to control Pemex's soaring debt.
Pemex's profit sharing rate (DUC), which is effectively a tax paid to the government, has been gradually lowered during President Andres Manuel Lopez Obrador's administration from a high of 65%.
The bill, passed after a marathon overnight session, will be sent on to the senate for approval. The bill's original draft, sent by the finance ministry, pitched a reduction to 35%, though ruling lawmakers voted for a larger cut.
Pemex is the most heavily indebted oil company in the world, facing some $110.5 billion in debt and hefty amortizations in 2024. Lopez Obrador said last week that he wanted to further reduce Pemex's tax burden.
Lopez Obrador has argued that Pemex's heavy tax burden hinders its ability to take on key exploration and production investments, and has fed the firm millions of dollars in cash injections and tax breaks with the promise of "rescuing" the company.
