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Mexico Small Retailers Protest Proposed 2026 IEPS Hikes on Sodas and Cigarettes

A mid-October vote on the revenue bill will determine whether the higher levies start in January.

Overview

  • Small shopkeepers led by ANPEC demonstrated outside the Chamber of Deputies and delivered more than 20,000 signatures opposing higher IEPS on sweetened, light beverages and tobacco.
  • ANPEC warns of potential closures of about 60,000 neighborhood stores and the loss of roughly 120,000 jobs, citing price jumps it estimates at 10–15% for soft drinks and up to 20–30 pesos per cigarette pack if the plan passes.
  • The proposal in the Paquete Económico 2026 would nearly double the per‑liter levy on sweetened drinks (about 1.64 to 3.08 pesos) and raise the ad valorem rate on manufactured tobacco from 160% to 200%, with changes phased in starting 2026.
  • ANPEC leaders are set to meet with the Chamber’s Hacienda Commission on October 8 to argue for modifications before lawmakers take up the Ley de Ingresos.
  • Ruling‑party legislators frame the increases as health measures that would fund a Health Fund for obesity and diabetes, while critics question past transparency and the risk of fueling illicit cigarette trade, with implementation slated for January 1, 2026 if approved.