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Mexico Moves to Tax Electrolyte Drinks as Congress Advances Health Levy Package

Hacienda signaled openness to adding sueros, with potential revenue near 5 billion pesos.

Overview

  • PT and PVEM legislators asked Finance Secretary Édgar Amador Zamora to include commercial rehydration beverages in the list of sugary drinks subject to IVA and IEPS.
  • Deputies argued brands such as Electrolit are marketed as medicines despite high sugar content, citing up to 3.7 times the WHO formula and taxes applied in the United States.
  • Lawmakers alleged the medicine classification let companies avoid taxes, pointing to Electrolit’s 2024 sales above 16 billion pesos and more than 12 billion pesos in forgone IVA and IEPS over five years.
  • The broader 2026 package updates excise rates to about 3.08 pesos per liter for sugary beverages and to 0.85 pesos per cigarette, with total additional revenue estimated at roughly 51 billion pesos.
  • Separately, the Chamber’s Health Commission unanimously backed a proposal to prohibit sales of energy drinks to minors.