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Mexico Defends 2026 Soda Tax Hike, Extending Levy to Diet Drinks

Officials project a roughly 7% drop in consumption with about 41 billion pesos earmarked for health.

Overview

  • The Paquete Económico 2026 proposes lifting the IEPS on flavored beverages to 3.0818 pesos per liter and applying it to drinks with non‑caloric sweeteners.
  • At the morning briefing, health officials said a 600‑ml bottle would rise by roughly one peso and outlined uses of the revenue for prevention campaigns, upgraded primary care, innovative treatments and high‑specialty services.
  • The beverage industry (MexBeb) warns retail prices could climb 10–15%, about 150,000 jobs could be at risk over five years and more than 1.2 million small stores could be strained, arguing the levy is regressive and hinders reformulation.
  • Business leaders such as the CCE contend the measure will pass costs to consumers without changing habits, calling for education and prevention instead of higher excise rates.
  • Civil society groups back the policy but urge Congress to go further with 7 pesos per liter on drinks, 3 pesos per cigarette and taxes on alcohol as legislators take up the proposal for debate and possible amendments.