Overview
- The Chamber of Deputies approved lifting the levy on sugary beverages from about 1.64 to 3.08 pesos per liter, adding a 1.5‑peso rate to ‘light/zero’ drinks, and moving cigarettes toward a 200% rate, slated to start January 1, 2026, with Senate action still pending.
- CEO James Quincey said Coca‑Cola expects a short‑term hit in Mexico and is coordinating with bottlers on pricing, marketing and RGM tactics, drawing on its 2014 playbook to adjust operations before the hikes take effect.
- Small‑commerce groups warn of 10%–15% sales drops and say roughly 200,000 shops are at risk, announcing mobilizations in Mexico City and other locations beginning in November.
- Trade representatives argue higher cigarette taxes will boost illicit sales, citing National Institute of Public Health data showing illegal consumption rose from 8.5% to 20.4% between 2017 and 2023.
- President Claudia Sheinbaum says there are no new taxes beyond adjustments and defends the higher IEPS on drinks and tobacco as a public‑health policy rather than a revenue grab.