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More than $338 million of VAT lost through piracy in 2014

Study finds that the total VAT lost to piracy in 2014 could finance UNAM for an entire year
By The News · 07 of March 2016 12:50:01
piracy, MÉXICO, D.F., 29JULIO2015.- La Procuraduría General de la República (PGR) desmanteló cuatro laboratorios para elaborar discos y películas apócrifas, durante un operativo realizado en domicilios ubicados en la colonia Morelos, delegación Cuauhtémoc. La dependencia informó que la diligencia judicial la efectuó personal de la Subprocuraduría Especializada en Investigación de Delitos Federales (SEIDF), al cumplimentar una orden de cateo girada por un juez federal penal. Al dar seguimiento a una averiguación previa por violación a la Ley Federal de Derechos de Autor, en esos lugares se aseguraron más de 46 mil 500 películas, 178 mil portadillas y cuatro mil 700 discos compactos. Además 840 fonogramas falsificados, 417 quemadores, 46 ventiladores de torres para quemar, 27 cerebros y siete aparatos electrónicos, entre otras cosas.FOTO: PGR /CUARTOSCURO.COM, No available

A study conducted by the Belisario Domínguez Institute of the Senate found that piracy in Mexico is putting the economic development of the country at risk.

In a report titled “Piracy in Mexico and its effect on society,” the institute underlines that the black market could have cost the country more than 43 billion pesos ($2.4 billion) in 2014, approximately 34 percent of the pre-budget cut announced by the Treasury and Public Finance Secretariat in 2015.

The total VAT lost to piracy in 2014 is enough to finance the National Autonomous University of Mexico (UNAM) for an entire year, according to the report.

MÉXICO, D.F., 20JUNIO2013.- Elementos de la Policia Federal Ministerial adscritos a la PGR acompañados de granaderos de la SSP-DF, realizaron operativos en la calle de Mesones y Eje Central donde decomisaron pirateria. FOTO: SAÚL LÓPEZ /CUARTOSCURO.COM

Films and music are among the most pirated products in Mexico today.
PHOTO: SAÚL LÓPEZ /CUARTOSCURO.COM

This practice is more prevalent in Mexico than in other countries, claimed the report.

Half of the total income taken in by the clothing sector comes in the form of piracy and contraband, resulting in a loss of around $9.45 billion for the sector.

Piracy also accounted for the loss of 7,000 music vendor locations, and around 29,500 jobs.

Moreover, eight out of every 10 films that are bought in Mexico are done so illegally, which is damaging the national cinema industry and is resulting in the loss of $340 million every year, warned the report.

Piracy can also be linked to other crimes, such as drug trafficking, tax avoidance, money laundering and theft, said the report.

An inquiry carried out by the Mexican Institute of Industrial Property (IMPI) revealed that 48 percent of people asked admitted to procuring an illegal product of some sort last year. A total of 5 percent admitted to buying illegal medicine, 9 percent illegal beverages and 22 percent black market cigarettes.

The most commonly acquired illegal products were music, film, video games, clothes, computer programs, television series, perfumes, cosmetics, toys and batteries.