No More Cash For Gasoline, Tolls

At least that’s what the feds want to accomplish as soon as possible, as another measure to prevent tax evasion and money laundering.

The government has allegedly discussed the plan with the banking industry but it has not yet been approved. A final decision on whether the ban will go ahead won’t likely be made until after the Bank of México (Banxico) rolls out its digital payment platform known as CoDi this month.

CoDi, short for Cobro Digital (Digital Charge), is part of a wider government plan to push more people into the banking system and cut down on the use of cash. Cash is king in Mexico, partially because of the huge informal economy and the illicit drug trafficking trade.

Only around 40% of Mexicans have bank accounts according to World Bank data shows and Finance Secretary Arturo Herrera said in March that cash is used for between 80% and 90% of transactions.

Brown bags sales are high but they could be endangered now, as the government plan to ban the use of cash at fuel pumps and toll booths could increase tax revenue. Reports from the World Bank state that Mexico collects less tax as a share of GDP than any other OECD country.

Cash payments for public transport, school tuition, electricity and passports could also be outlawed at some time in the future.