Introduction to the SHCP and its “Healthy Taxes” Initiative
The Secretaría de Hacienda y Crédito Público (SHCP) has once again defended what they call “healthy taxes.” According to Carlos Lerma Cotera, the subsecretary of Ingresos at SHCP, these taxes will generate an additional 42 billion pesos in revenue for health spending in the upcoming year.
Background on Carlos Lerma Cotera and SHCP
Carlos Lerma Cotera serves as the subsecretary of Ingresos within the SHCP, a Mexican governmental body responsible for managing public finances and credit. His role in defending the “healthy taxes” highlights the importance of this initiative and his influence in shaping Mexico’s fiscal policies.
Details of the “Healthy Taxes” Initiative
During a meeting with senators from the Comisiones Unidas de Hacienda y Crédito Público y de Estudios Legislativos Primera, Lerma Cotera explained that these taxes aim to address health issues caused by sugary drinks and tobacco consumption. He clarified that no new taxes are being created, but rather existing ones are being updated.
Expected Revenue from “Healthy Taxes”
- Sugary drinks (including light and zero-calorie options): 35,000 million pesos
- Tobacco: 5,000 million pesos
- Video games and lotteries: over 1,000 million pesos
- Violent video games: 180 million pesos
These additional funds will be allocated to the health budget, which totals 966,662 billion pesos for the upcoming year, including the extra revenue from these healthy taxes.
Addressing Concerns about Job Losses and Small Businesses
Lerma Cotera addressed concerns about the potential negative impact on jobs in companies producing and selling these products, as well as small retailers. He referenced previous tax adjustments, stating that sugary drink consumption decreased by less than 5% following tax increases. This resulted in minimal impact on both large companies and small retailers.
IEPS Adjustments for Sugary Drinks
According to the legislation approved by the Chamber of Deputies, the IEPS (Impuesto Especial sobre Producción y Servicios) for sugary drinks will increase from 1.6451 to 3.018 pesos per liter the following year. For light or zero-calorie drinks, the tax will be 1.5 pesos per liter.
Key Questions and Answers
- What are “healthy taxes”? The SHCP’s “healthy taxes” initiative aims to address health issues caused by sugary drinks and tobacco consumption through adjustments to existing taxes.
- How much extra revenue is expected from these taxes? An additional 42 billion pesos will be generated for health spending.
- How will the revenue be allocated? The extra funds will go to the health budget, which already includes the additional revenue from these taxes.
- Are there concerns about job losses or impact on small businesses? Lerma Cotera stated that previous tax adjustments had minimal impact on jobs and small retailers, with sugary drink consumption decreasing by less than 5%.
- What are the specific IEPS adjustments for sugary drinks? The IEPS for sugary drinks will increase from 1.6451 to 3.018 pesos per liter, while light or zero-calorie drinks will see a tax of 1.5 pesos per liter.
