Tax Deductible Medication Expenses: Proposed Initiative to Reduce Out-of-Pocket Costs

2023-09-30 17:15:00

Deputy Luis Arturo González (PVEM) presented an initiative that proposes that medication expenses can be tax deductible.

He pointed out that The shortage of medicines in the country has caused out-of-pocket expenses to rise for citizens by having to buy their treatments in the private sector.

“The lack of medicines in the public system, which a good number of people suffer from because they do not have social security, has led to private offices and pharmacies being the ones that bring medical care and medicines to a significant percentage of the population, which which implies a notable out-of-pocket expense”said.

According to the Mexican Institute for Competitiveness (IMCO), In Mexican households with high incomes, the average monthly expenditure on health is 1,457 pesos, while in middle-income households it is 288 pesos per month..

The legislator proposed to reform article 151 of the Income Tax Law (LISR), since Currently, personal deductions allow the deduction of hospital expenses and medicines included in hospital bills, but pharmacy receipts are not applicable..

The initiative aims to grant this right and thus reduce the expenditure incurred on medications in establishments such as pharmacies from the cumulative income in the annual tax return..