Experts Criticize Mexico’s 2026 Economic Package for Missing Key Tax Adjustments
During the “Healthy Taxes, Healthy Generations” forum at the Chamber of Deputies, organized by Alfonso Ramírez Cuéllar (Morena), experts highlighted the absence of crucial tax adjustments in Mexico’s proposed “healthy taxes” within the 2026 Economic Package.
Alcohol and Processed Foods Omitted
Alejandra Macías, executive director of the Center for Economic Research and Budgeting (CIEP), pointed out that alcoholic beverages were notably missing from the proposed tax changes. Diego de la Mora, from Fundar, a research and analysis center, echoed this sentiment and added that processed foods should also have seen an increase in the Impuesto Especial sobre Producción y Servicios (IEPS).
Additional Tax Measures Needed
De la Mora suggested that, in addition to raising the IEPS on alcoholic beverages and processed foods, the Impuesto sobre la Renta (ISR) for companies producing these harmful products should also be increased.
Evidence of Effective Tax Increases
Both experts agreed that there is substantial evidence showing that raising taxes on harmful products like cigarettes, sodas, and alcohol can lead to reduced consumption.
Proposed Tax Adjustments in the 2026 Economic Package
The Mexican government’s 2026 Economic Package includes a reform to the IEPS law, proposing increased taxes on flavored beverages, hand-rolled cigarettes, and gambling. Additionally, the package aims to introduce an 8% IEPS on violent video games.
Projected Revenue and Allocation
According to the Secretariat of Finance and Public Credit, these “healthy taxes” are expected to generate an additional 39,400 million pesos for the federal government. These funds are intended to be allocated to a health fund.
- Increase IEPS on flavored beverages from 1.64 pesos per liter to 3.08 pesos.
- Raise the ad valorem rate (based on the final value of goods) for hand-rolled cigarettes from 160% to 200%.
Health Impacts of Proposed Tax Adjustments
Dr. Erick Antonio Ochoa stated that increasing the IEPS on cigarettes to 3 pesos per cigarette could reduce consumption by over 40%.
Dr. Carlos Salgado from the National Institute of Public Health (INSP) confirmed that there is documented evidence from his institute showing a decrease in demand for flavored beverages as their prices rise.
Health Consequences of Consuming Flavored Beverages
Dr. Luz Miriam Reynales from INSP highlighted that Mexico faces a smoking epidemic causing 429,380 new cases of respiratory and cardiac diseases annually, resulting in 63,233 deaths. The social costs amount to 193,000 million pesos per year.
Doré Castillo from ContraPESO emphasized that Mexico ranks high in the consumption of flavored beverages, such as sodas, packaged juices, and artificial teas. The average Mexican consumes 166 liters of soda per year, with 80% of the population reportedly consuming sugary drinks.
Excessive consumption of these beverages is linked to chronic diseases like obesity, diabetes, and cardiovascular issues, as well as dental caries, gout, and hepatic syndrome.
