Soft drink industry offers alternative to proposed IEPS increase

Mexico’s soft drink industry has presented a plan to the government seeking to prevent the 87 % increase in the Special Tax on Production and Services (IEPS) planned for 2026. The proposal centers on gradually reducing sugar levels and collaborating with health authorities to promote better consumption habits.

The tax would rise from 1.64 to 3.08 pesos per liter, with additional funds earmarked for public health programs. Retail groups warn the hike could impact over 60,000 small stores and drive up prices. Financial analysts note that demand for soft drinks is relatively inelastic, suggesting fiscal measures should be paired with education and awareness efforts.

Source: El Financiero

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