Mexican Supreme Court denies diesel tax relief to Peñoles

The Supreme Court of Justice of the Nation (SCJN) denied an amparo to Industrias Peñoles and several subsidiaries. The mining group sought access to tax incentives granted by the Ministry of Finance and Public Credit for the 2019 fiscal year.

By a majority of seven votes, the ministers determined that Rule 9.16 of the 2019 Miscellaneous Fiscal Resolution is a valid exercise of powers by the Tax Administration Service (SAT). Reporting justice María Estela Ríos explained that conditions such as holding a mining concession title, proving specific income, or being current on mining duties are reasonable mechanisms to verify compliance rather than modifications to the diesel and biodiesel tax incentive.

The dispute began in 2019 when Peñoles challenged Rule 9.16. In July 2024, the Superior Chamber of the Federal Tribunal of Administrative Justice (TFJA) validated the measures. Peñoles subsequently obtained a favorable amparo ruling from the Seventeenth Collegiate Tribunal in Administrative Matters of the First Circuit, which held that the tax authority exceeded its powers. That decision prompted the SAT and the Ministry of Finance to request a review by the Supreme Court.

Justice Yasmín Esquivel Mossa cast the sole dissenting vote against the decision. Esquivel Mossa argued that the tax authority overstepped its legal boundaries, specifically questioning requirements such as proving minimum income of 50 million Mexican pesos during the prior fiscal year.