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Retailers Protest as Mexico Weighs Sharp 2026 Excise Hikes on Sugary Drinks and Tobacco

Hearings focus on extending taxes to low‑calorie drinks, raising tobacco rates, provoking warnings over illicit trade.

Overview

  • ANPEC staged a sit‑in outside the Chamber of Deputies with more than 2,000 shopkeepers and delivered tens of thousands of signatures, securing meetings with the Finance Commission during pre‑vote hearings.
  • The Paquete Económico 2026 proposes an 87% IEPS increase on flavored drinks, a new levy on previously exempt low‑/no‑calorie beverages, and lifting tobacco’s ad valorem rate from 160% to 200% starting in 2026.
  • Price effects cited in the debate include soft drinks rising 10%–15% from January 1, 2026 and cigarettes increasing by up to 20 pesos per pack, with industry warning legal packs could exceed 100 pesos.
  • ANPEC estimates at least 60,000 corner stores and 120,000 jobs are at risk and projects a 15% drop in sales, while retailers and tobacco groups caution illicit cigarettes could reach roughly 30% of the market.
  • Public‑health researchers from INSP, CIEP and Johns Hopkins report that a 10% price increase cuts consumption of sugary drinks and tobacco by 7%–12%, and Morena lawmakers tout channeling proceeds to a health fund, though the plan remains under congressional review.