The Honda Civic Hybrid and the Tenencia Tax

In a previous article, some time ago, I had mentioned that one of the advantages of spending some extra pesos to buy the Honda Civic Hybrid, was the fact that the tenencia (a special ‘temporary’ tax invented to raise funds for the 1967 Olympics in Mexico City that was never eliminated) was just a fraction of what owners of regular, gas-powered cars pay. This was a stimulus to encourage people to buy these vehicles.

Alas, this is no more. Ever since Felipe Calderon ‘eliminated’ the hated federal tenencia tax – eliminated in quotation marks because all he did was eliminate the federal part and pass it on to the states to administrate as they see fit – each state government has dealt with it in their own way.

In the state of Yucatan, according to a Honda salesman I talked to just yesterday, the tenencia tax has actually been expanded to include all those luxury pickups (Lincoln, Hummer, Harley Davidson Ford) which is probably justifiable if you want to justify this stupid tax; however, it has also included the Hybrid vehicles so we, in the state of Yucatan, no longer have that stimulus. You CAN, however, buy the car in next-door Quintana Roo and NOT pay the tenencia tax as their state government did not modify the tenencia.

Seems like we could do a whole lot better in promoting healthier, greener options for transportation instead of lagging light years behind the rest of the civilized world and acting as if there was no pollution problem here in sunny Mexico.

I refer you to my previous article on ‘green’ policies that I would like to see implemented here.

2 thoughts on “The Honda Civic Hybrid and the Tenencia Tax

  1. My property taxes are so low that I wonder how anything gets done in Merida. Although I know they are city taxes, and the Tenencia is a state tax, I have always figured it was no big deal to pay tenencia because somebody needs some revenue somewhere to do all the stuff that gets done around here! I know it is not the most efficient place on the planet, but I find city and state services both pretty efficient and some are downright impressive.

  2. True, Juanita. We probably pay less than our cohorts up north. That said,
    a) the Tenencia tax was designed in ’67 to pay for the Mexico City Olympics and should have been abandoned a long time ago and replaced by a more equitable tax system that doesn’t only tax those who are ‘on the radar’. The tax on food and medicine would have had minimal impact but there were cries of protest from the diputados (who earn 80,000 pesos a month) that this was ‘unfair to the poor’ and so it was blocked. Meanwhile we continue to pay, while 70% of the country does not; and
    b) The reduced tenencia was a good incentive for people to buy a hybrid car which they might otherwise not have, since it is a new technology, there is a sacrifice in power and they are more expensive.

    Bad move all around IMHO.

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