Category Taxation in Mexico

Mexico’s Soda Tax Cuts Consumption

March 5, 2017 Taxation in Mexico

Soda Tax in mexicoMEXICO CITY – Mexico’s tax on sugary beverages has slackened the country’s thirst for added sugar, and has decreased soda consumption for the second year in a row.

New research conducted by Shu Wen Ng, health economist and a professor at the University of North Carolina in Chapel Hill, has indicated that the recent tax on the sale of sugary beverages in Mexico has significantly cut down the consumption of such drinks.

It is estimated that in 2015 the sale of sugary drinks fell by 9.7 percent, compared to the level that the sales would have been had the tax not been enacted.

In the prior year, the consumption fell by 5.5 percent, bringing the average to the 7.6 per year over the course of the tax so far.

The tax did not have an equal effect on consumers from various socio-economic groups,...

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Mexico’s Calorie Tax Reduces Consumption

July 6, 2016 Taxation in Mexico

MEXICO CITY – Mexico’s tax on calorie-rich foods appears to have influenced consumers’ shopping behavior, though it is not yet clear if it has improved their diets.

On July 5th the medical journal PLOS Medicine published a new article claiming that taxes on energy dense foods in Mexico led to a reduction in the purchase and consumption of such foods.

In 2014 the government of Mexico enacted a tax of 8 percent on the sale of non-essential foods with more than 275 calories per 100 grams, a move that was aimed at curbing the excessive consumption of snack foods, chips, pastries, and other foods deemed to be unhealthy.

Overall the consumption of the energy-dense foods declined by 25 grams per capita per month, equivalent to a 5.1 percent drop in consumption, compared non-taxed foods.

The new ...

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Mexico’s Sugar Tax Sees Success

January 8, 2016 Taxation in Mexico

MEXICO CITY – Despite previous doubts, Mexico’s sugar tax has reduced the consumption of sugary drinks in the country.

The sugar tax recently enacted in Mexico has been shown to have had a positive effect on consumer spending habits, with consumption of sugary beverages having fallen since the measure was put into force.

In 2014 Mexico introduced a tax of 10 percent on the sale of sugar-sweetened drinks, a move which placed Mexico at the forefront of countries introducing tax measures aimed at reducing the consumption of unhealthy foods.

According to the results of the study, the tax led to a 6 percent reduction in the sale of sugary drinks, compared to the average level of sales of the previous two years.

Further, in 2015 the level of sales was 12 percent lower than the previous level...

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Soda Tax Reduce Consumption in Mexico

June 17, 2015 Taxation in Mexico

MEXICO CITY – Mexico’s recent soda tax has been proven to be effective, especially among low-income earners.

According to the results of a new study conducted by the Mexican National Institute of Public Health and the University of North Carolina, the tax on the sale of sugary beverages in Mexico has had a positive and measurable effect on reducing the consumption of such drinks in the country.

The tax, which as first imposed in 2014, is levied at a rate of approximately 10 percent of the sale price of any drinks containing added sugar.

As a result of the 10 percent tax the consumption of sugary drinks has fallen by an average 6 percent over the course of 2014.

Further, the tax had a significant effect on the consumption patterns among low-income earners, with the purchase of sugary drink...

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Fat Tax for Mexico

October 21, 2013 Taxation in MexicoTaxation in South America

Five Guys MealMEXICO CITY – The government of Mexico is looking to tax unhealthy foods in order to improve the health of its citizens and reduce the sale of fatty, sugary and calorie-rich foods.

Late last week the Chamber of Deputies of Mexico approved a new “fat tax” of 5 percent on the sale of any containing more than 275 calories per 100 grams, in an effort to curb the widespread habit of the Mexican population to consume fast foods and other unhealthy goods.

The Chamber also approved an additional taxes of MXN 1 per liter on the sale of sugary soft-drinks, and a 16 percent tax on chewing gums.

It is currently estimated that more than 7 out of every 10 adults in Mexico are overweight or obese, the highest rate in any OECD nation, and, according to the government, the weight issues currently pl...

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