(Bloomberg) -- Mexico’s President Andres Manuel Lopez Obrador wants to give state-owned oil company Petroleos Mexicanos, one of the world’s most indebted energy producers, an extra hand to improve its finances by further reducing the taxes it pays.
Lopez Obrador wants Pemex’s profit sharing duty payments, known as DUC, to be lower than the 35% proposed in the Finance Ministry’s 2024 budget. That level is already five percentage points below the previous year.
“We want to lower it more with the purpose of strengthening a public company that is fundamental,” AMLO, as the president is known, said at his morning press conference Tuesday without giving a specific time-frame for the tax reduction.
Read more: AMLO’s Flagship Projects Drive Big Boost in Mexico’s 2024 Budget
Pemex CEO Octavio Romero said Monday total debt was down to $106.3 billion as of September, and he expects the company to continue reducing it through the end of the year. Meanwhile, Mexico’s lower house and Senate are expected to approve the budget before the legislative period ends in December.
--With assistance from Maya Averbuch.
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