Background on Claudia Sheinbaum
Claudia Sheinbaum Pardo is the current President of Mexico City, serving since 2018. As a prominent politician and environmental activist, she has been instrumental in implementing progressive policies focused on sustainability, public health, and social welfare. Her recent announcement regarding tax increases on sugary drinks, tobacco, and video games highlights her commitment to improving public health in Mexico.
Tax Increases on Sugary Drinks
On the morning of this Tuesday, Claudia Sheinbaum clarified that the proposed increases in taxes on sugary beverages are not intended to boost revenue but rather serve as part of public health and security measures.
Sheinbaum Pardo explained that all revenues generated from these taxes will be directly channeled into a health fund to address diseases related to excessive consumption of these drinks. This decision underscores her administration’s dedication to combating health issues stemming from unhealthy lifestyle choices.
Tax Increases on Tobacco
Regarding tobacco, the Mexican government plans to raise the ad valorem tax from 160% to 200%. Additionally, a gradual increase in the specific tax on smokeless tobacco will be implemented until 2030. The new tax scheme will also include emerging nicotine-based products, such as “nicotine bags,” to ensure comprehensive coverage.
Tax Increases on Video Games
Sheinbaum Pardo emphasized that the proposed tax hikes on video games are not about prohibition but rather promoting responsible parenting and family security.
“We are not discussing prohibitions; instead, we aim to address the role parents and guardians play in monitoring video game usage and selecting appropriate content,” she clarified.
The President hinted that a more extensive discussion on video games would take place during an upcoming security meeting. Meanwhile, the Secretary of Health will disclose detailed information about the impact of sugary drinks and the allocation of collected taxes.
Key Tax Changes
- Sugary Drinks: An 8% special tax on violent video game services and an increase in the tax on online gambling from 30% to 50%. The Impuesto Especial sobre Producción y Servicios (IEPS) will rise to 3.08 pesos per liter, including drinks with non-caloric sweeteners.
- Tobacco: The ad valorem tax will increase from 160% to 200%. A gradual rise in the specific tax on smokeless tobacco will be implemented until 2030. The new tax scheme will also cover emerging nicotine-based products like “nicotine bags.”
- Video Games: An 8% special tax on violent video game services. The focus is on responsible parenting and family security rather than outright prohibition.
Next Steps and Further Information
The Secretary of Health will provide detailed information about the impact of sugary drinks and the allocation of collected taxes during an upcoming announcement on Thursday. Meanwhile, a more comprehensive discussion on video games will take place during an upcoming security meeting.
