Mexico Sugar-Sweetened Beverage Tax

The tax is implemented to address the prices of sugar sweetened beverages, carbonated sodas in particular. The aim is to reduce the number of patients with diabetes and other cardiovascular diseases in Mexico, which high numbers has led to a burden on the Mexican health system. The policy consists of a one Mexican Peso per litre tax of soda, a long side a five per cent tax on junk food.

The policy was presented as a national tax in President Enrique Peña Nieto’s first fiscal bill package in 2013. After an intense campaign by soda and sugar companies against the preposition the bill was passed by the Mexican Senate in October 2013. The policy was necessitated by the alarming rise of obesity related diseases in Mexico. Mexico has seen a rise in obesity during the past 30 years and in 2020 36.1% of the adult population were obese. The rate of obesity is widespread among both affluent and poorer areas.

The policy is being administrated as a tax and the Mexican Tax Services are responsible.

The tax is implemented on all sales within Mexico. Measured results are as follow: 1. By 2016 a 37% reduction in the total volume of sugar sweetened beverages purchased, compared to before the tax. 2. Greatest reduction in purchases seen among poorer households. 3. Based on these numbers the tax will prevent 239,900 cases of obesity. 4. The tax is highly cost effective, saving the state costs spent on health care. Source: https://www.obesityevidencehub.org.au/collections/prevention/countries-that-have-implemented-taxes-on-sugar-sweetened-beverages-ssbs#:~:text=Studies%20of%20the%20effects%20of,the%20year%20before%20the%20tax.

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