SAT Touts Higher Collection Efficiency: Lower Cost to Collect Taxes and Stronger Digital Enforcement

Mexico’s tax authority reports it is bringing in more revenue with less spending, supported by digitalization, data matching, and tighter customs controls.

The Tax Administration Service (SAT) reported a significant reduction in its cost of collection, noting that for every 100 pesos collected, related operating expenses fell from 0.43 pesos in 2018 to 0.25 pesos by the end of 2025. In practical terms, this means the agency collects 100 pesos for every 25 centavos it spends—an adjustment that, if sustained, expands the federal government’s room to maneuver in a public-finance environment pressured by greater social spending needs, public investment, and the financial cost of debt.

According to the agency, performance also improved on enforcement: between January and December of the last year, it recovered 248 pesos for every peso invested in audit actions. In its view, this efficiency is framed within the “Master Plan” and a policy of public-spending discipline aligned with the guidelines of the Government of Mexico led by President Claudia Sheinbaum.

The figures were released after a year-end close in which tax revenues reached 5.3 trillion pesos, with real growth of 4% versus 2024, according to SAT. In Mexico’s macroeconomic context—moderate growth, domestic demand sensitive to still-elevated interest rates, and a taxpayer base increasingly shifting toward digital platforms—the rise in revenue collection has become one of the central levers for sustaining public programs without resorting abruptly to broad-based rate hikes.

The strategy, as described by the agency, relies on greater process digitalization and the use of analytical tools, including Artificial Intelligence, to make compliance easier while also detecting inconsistencies through information cross-checks. In practice, this often translates into closer monitoring of e-invoicing, tax filings, withholdings, gaps between reported income and financial movements, as well as tracking supply chains to identify high-risk transactions.

Data-Driven Enforcement: Revenue Benefits and Challenges for Taxpayers

The shift toward more automated enforcement has two important implications. The first is fiscal: by lowering verification costs and improving risk selection, SAT can focus audits on cases with a higher probability of recovery, increasing the “return” on audits and shortening collection timelines. The second is compliance-related: for businesses and individuals, it raises the need for internal controls, accounting reconciliations, and end-to-end traceability of transactions—especially in sectors with high informality or in activities where billing and logistics have digitized rapidly.

In parallel, SAT highlighted actions tied to customs, in coordination with Customs authorities and customs brokers, to combat bad practices. In an economy as integrated into foreign trade as Mexico’s, customs control affects both revenue (through VAT and foreign-trade taxes) and economic competition by reducing opportunities for undervaluation, smuggling, or triangulation schemes that harm formal industries.

The stronger revenue performance comes at a time when public debate is focused on how to fund priorities without undermining fiscal stability. The combination of higher tax revenues, containment of administrative costs, and tougher enforcement can improve the primary balance and the credibility of fiscal policy; however, its sustainability depends on maintaining clear rules, robust taxpayer service processes, and a strategy that does not discourage formal investment—especially among small and mid-sized businesses that face relatively high compliance costs.

Looking ahead, the model’s effectiveness will hinge on data quality, platform interoperability, and institutional capacity to resolve disputes quickly. In an environment where Mexico’s economy aims to capitalize on supply-chain realignment while maintaining macro stability, efficient tax collection can become a key factor in sustaining public investment, social programs, and financial certainty.

In short, SAT is showcasing a notable improvement in efficiency and enforcement results, driven by digitalization and tighter customs control; the challenge will be balancing increased oversight with legal certainty and measures that sustain voluntary compliance and formalization.