Sheinbaum Faces Test of Power in Tax Battle with Mexican Billionaire Salinas

Post by : Saif Nasser

Mexico City – Mexico’s President Claudia Sheinbaum is facing a major challenge from one of the country’s wealthiest businessmen, Ricardo Salinas Pliego. The billionaire, who runs an empire spanning banking, media, and retail, owes the government around $4 billion in unpaid taxes. What began as a financial dispute has now turned into a high-stakes political and legal confrontation, testing Sheinbaum’s authority and her government’s ability to hold powerful elites accountable.

Salinas has built his fortune over decades, starting as CEO of his family’s appliance business. In 1993, he expanded into television, purchasing a state-owned network and creating TV Azteca, now Mexico’s second-largest broadcaster. Over the years, his conglomerate, Grupo Salinas, secured numerous government contracts, making him a familiar figure in Mexico’s business and political circles.

The conflict intensified recently when Mexico’s Supreme Court upheld tax claims of $2.5 billion against Salinas’ companies. The ruling applies to taxes from 2008 to 2013 and cannot be appealed. Salinas offered to settle $400 million, but Sheinbaum rejected this, insisting he pay the full amount. The dispute reflects Sheinbaum’s broader strategy to enforce tax compliance and fund social programs for Mexico’s poorer citizens, a key part of her political support.

This clash has also spilled into public life. Salinas has positioned himself as a critic of Sheinbaum, joining protests against her government and voicing anger over corruption and public safety. Supporters compare him to U.S. former President Donald Trump and Argentina’s Javier Milei, viewing him as a potential presidential candidate. Meanwhile, Sheinbaum’s administration accuses him of funding unrest, pointing to social media campaigns and other measures that have mobilized public protests.

The feud is drawing attention beyond Mexico. The U.S. Chamber of Commerce criticized the country’s tax enforcement as “aggressive and inconsistent,” while international observers note that the Supreme Court’s quick ruling may appear biased in favor of the government. Analysts warn that Sheinbaum risks alienating the business community, as previous leftist administrations faced similar tensions with major corporations.

Beyond taxes, Sheinbaum has also reviewed some of Salinas’ government contracts, raising the possibility of cancellations. Meanwhile, other large companies, including Samsung Electronics, are under scrutiny for tax disputes, signaling a broader crackdown on corporate compliance.

For Sheinbaum, the battle with Salinas is more than a tax issue. It is a test of leadership, public perception, and her ability to confront entrenched wealth and influence. For Salinas, it is a chance to portray himself as a defender of citizens against government overreach and to strengthen his political standing.

As tensions escalate, the outcome of this high-profile showdown could shape Mexico’s business climate, judicial independence, and political landscape. Both sides appear ready to continue their fight, making this one of the most closely watched conflicts in the country today.

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