Mexico May Increase Taxes On Soft Drinks Even More

Mexico May Increase Taxes On Soft Drinks Even More

MEXICO.- After last year's tax reform, when Congress approved the increase of tax fees on sweetened beverages despite fierce opposition from soft drink manufactures and even citizen complaints, the policy has apparently worked to lower consumption of soda, juice and flavored sweetened water down 17%. Thinking that this percentage could lower itself even more, and […]

Por Elizabeth Rosales el April 13, 2017

MEXICO.- After last year's tax reform, when Congress approved the increase of tax fees on sweetened beverages despite fierce opposition from soft drink manufactures and even citizen complaints, the policy has apparently worked to lower consumption of soda, juice and flavored sweetened water down 17%.

Thinking that this percentage could lower itself even more, and with it Mexico's high obesity rate, several non governmental organizations have demanded that the taxes on these beverages must go up to 20% as part of the next tax bill, which would take place on September 8th.

"The recommended tax fee by international organisms is about 20% in order to significantly reduce intake; this fee should be accompanied by a comprehensive policy that fights against Mexican malnutrition," mentioned Alejandro Calvillo, Director of El Poder del Consumidor.

They also requested that tax fees for bottled water that comes in a 10 litter containers or less, get eliminated, given that 'this will make natural water the most accessible way of hydration'.

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