Overview

• The Chamber of Deputies’ finance committee plans to approve the Income Law with higher IEPS, raising the sugary‑drink quota from 1.6451 to 3.0818 pesos per liter and extending the tax to sweetened electrolyte drinks that do not meet WHO standards and to beverages with non‑caloric sweeteners.
• For tobacco, the draft increases the ad valorem rate on cigarettes from 160% to 200% and lifts the specific quota to 0.8516 pesos per cigarette in 2026, rising annually to 1.1584 pesos by 2030, implying about 18 pesos more per pack starting in January.
• The committee proposes cutting the new IEPS on nicotine pouches to 100% from the Executive’s 200% proposal, estimating a retail price rise of roughly 101%—about 70 pesos per 15‑pouch can—with a commission vote scheduled today.
• Banxico deputy governor Jonathan Heath warned in policy‑meeting minutes that large IEPS hikes and potential new tariffs could push inflation higher; he dissented from the Sept. 25 rate cut to 7.5% as the board signaled a meeting‑by‑meeting approach to further moves.
• Beverage makers and small‑retailer group ANPEC campaign against the taxes as harmful to purchasing power, while a national survey reported 56% support for raising the soda tax—rising to 83% if funds go to health programs—echoing backing from public‑health organizations and prior research showing purchase declines after the 2014 levy.