Overview

• The Finance Ministry’s proposal under the 2026 package would lift the IEPS on flavored beverages to 3.08 pesos per liter and extend it to products with non‑caloric sweeteners.
• The plan also raises the ad valorem IEPS on manufactured tobacco from 160% to 200%, with industry warning legal packs could top 100 pesos and that illicit sales would expand.
• More than 2,000 small merchants rallied outside the lower house and delivered over 20,000 signatures opposing the hikes, with ANPEC warning of 60,000 store closures and 120,000 livelihoods at risk.
• In meetings with the Hacienda Commission, business groups pressed for differential treatment, arguing the draft would increase prices more for low‑calorie drinks and could devastate powdered drink makers, who cite a 190% jump and 5,000 jobs at risk.
• Public‑health researchers from INSP, CIEP and Johns Hopkins backed higher prices as a deterrent, presenting evidence that consumption falls when taxes raise retail costs.