LatinNews Daily - 14 February 2024

*Mexico’s President Andrés Manuel López Obrador has issued a presidential decree stipulating new tax breaks for the state-owned oil company, Pemex. The decree ordered that Pemex did not have to pay its profit-sharing duty (DUC) for the period between October 2023 and January 2024. Pemex’s DUC has been consistently lowered under López Obrador, from 65% at the start of his presidency to 30% this year. The decree, which was published in the official gazette (DOF), said the tax relief was necessary “to continue supporting the exploration and extraction of hydrocarbons in the country”. According to a Pemex source consulted by newswire Reuters, the decree saves Pemex around M$110bn (US$6.4bn) in tax payments. The tax relief comes days after international credit ratings agency Moody’s Investors Service downgraded Pemex’s rating.