Background on Gerardo Cleto López Becerra and His Organization
Gerardo Cleto López Becerra, president of the Consejo para el Desarrollo del Comercio en Pequeño y la Empresa Familiar (ConComercioPequeño), is a prominent figure advocating for small businesses and family-owned enterprises in Mexico. His organization represents the interests of small retailers, often referred to as “tienditas,” who face stiff competition from large chains and convenience stores.
Legislative Decisions and Their Impact on Small Businesses
The legislators from Morena, a political party in Mexico, have been criticized by ConComercioPequeño for failing to consider the input of business organizations during discussions on adjustments to the IEPS (Impuesto Especial sobre Producción y Servicios), a value-added tax in Mexico. The organization argues that these legislative decisions will only lead to increased illegality and harm the national industry as well as small businesses.
Invitations and Lack of Consideration
Despite inviting various business organizations, research centers, cooperative workers, and trade guilds to provide data and figures demonstrating that the proposed IEPS increases would foster an informal economy and street vending, ConComercioPequeño claims that their input was disregarded.
Consequences for Small Retailers
Small retailers, already struggling with competition from larger chains and convenience stores, now face an alarming situation: extortion by criminal organizations demanding the sale of specific illegal cigarette brands. In states like Coahuila, Nuevo León, and Tamaulipas, an estimated 90% of traditional small stores are forced to sell products controlled by criminal groups.
“The proposed tax adjustments will have disastrous consequences,” stated Gerardo López, “as small retailers will bear the brunt of these changes, which will only exacerbate their existing challenges.”
Details of the Legislative Decisions
The Cámara de Diputados (Chamber of Deputies) approved increases to various special taxes and the creation of new taxes on numerous products and services, effective January 2026. Among these changes are a 200% increase on cigarettes and a 30% increase on soft drinks.
Growth of Illicit Cigarette Trade
According to a study by the Instituto Nacional de Salud Pública, the illicit trade of cigarettes in Mexico has grown by 240% between 2017 and 2023, rising from 8.5% to 20.4% of the national consumption.
The primary reason for the increase in smoking rates in Mexico is the availability of cheaper, illegally imported cigarettes, which undercut the price of domestically produced cigarettes.
Key Questions and Answers
- What is the main concern of ConComercioPequeño? The organization is worried that the proposed IEPS increases will foster an informal economy, increase illegal activities, and ultimately harm small businesses and the national industry.
- Why are small retailers particularly vulnerable? Small retailers already face fierce competition from larger chains and convenience stores. The proposed tax changes will only exacerbate their existing challenges, including extortion by criminal organizations.
- What specific tax changes were approved? The Cámara de Diputados approved a 200% increase on cigarettes and a 30% increase on soft drinks, along with new taxes on various products and services.
- How has the illicit cigarette trade grown in Mexico? Between 2017 and 2023, the illicit cigarette trade in Mexico has grown by 240%, increasing from 8.5% to 20.4% of the national consumption.
- What factors contribute to the rise in smoking rates in Mexico? The availability of cheaper, illegally imported cigarettes is the primary reason for the increase in smoking rates, as they undercut the price of domestically produced cigarettes.
