Overview

• The 2026 budget plan would raise the IEPS on sugary beverages by 87.3%, from 1.64 to 3.08 pesos per liter, and extend the tax to drinks with low‑ or no‑calorie sweeteners starting in 2026.
• The International Sweeteners Association urged Mexico to reconsider taxing low‑ or no‑calorie sweeteners, citing EFSA, FDA and JECFA evaluations of safety and warning the move could hinder industry innovation.
• New analysis underscores that beverage taxes generally reduce purchases but finds uncertainty over the size and durability of effects, with documented substitution to untaxed high‑calorie foods.
• Evidence reported in the coverage highlights heavier burdens on lower‑income households and recommends pairing taxes with subsidies or programs that improve access to healthier options.
• Mexico’s juice sector warned the higher rate would raise consumer prices and ripple through farmers and processors, questioned past use of IEPS revenues, and said it is pressing legislators to revise the proposal.