Mexico deputies propose tax hikes on beer and high-sodium foods

The Mexican Chamber of Deputies' Finance Commission is analyzing proposals to adjust the Special Tax on Production and Services (IEPS) for the 2027 Economic Package. The primary objectives are to improve public health by discouraging the consumption of ultra-processed foods and to increase federal revenue.

One major proposal involves targeting products with excessive sodium, such as instant noodles, sausages, deli meats, and certain sauces. Legislators suggest these adjustments could generate approximately 12 billion pesos. The measure aims to mitigate health issues like hypertension and cardiovascular disease by incorporating nutritional externalities into fiscal policy.

Additionally, deputies are considering an increase in the tax on beer. Proposals suggest a price hike of between 60 cents and one peso per unit, which could contribute an additional 6.5 billion pesos to the treasury. This adjustment is being discussed to address fiscal asymmetries, noting that while beer accounts for over 93 percent of alcoholic beverage consumption in Mexico, it contributes only about 63 percent of IEPS revenue from the sector.

While these measures are being discussed as part of the 2027 budget planning, they are not yet approved laws. Officials have clarified that these are not new structural taxes but rather updates to existing levies, similar to previous adjustments made to sugary drinks and tobacco.