Federal Government announces reduction of ISR, VAT and gasoline in the following states Posted byEntrepreneur en Español November 28, 2020 Leave a comment on Federal Government announces reduction of ISR, VAT and gasoline in the following states As of January 1, 2021, the Value Added Tax (VAT), Income Tax (ISR) and gasoline will be lowered in the southern border municipalities of Mexico in order to boost the regional economy.