Mexico Deputy proposes tax reform for alcoholic beverages

Mexican Deputy Vanessa López Carrillo has called for a review of the tax treatment for distilled spirits and other alcoholic beverages to address significant fiscal asymmetries. Data presented to the Commission of Finance and Public Credit indicates that while beer accounts for 93.1% of the volume of alcoholic beverages sold in Mexico, it contributes only 63.3% of the Special Tax on Production and Services (IEPS) revenue. In contrast, distilled spirits represent only 6.3% of the volume but contribute 33.3% of the tax collection.

López Carrillo warned that current market conditions, including falling agave prices due to high inventory and low demand, threaten rural employment and the stability of entire communities. The proposed adjustment aims to protect products with protected designations of origin without sacrificing total tax revenue. The proposal suggests a moderate increase in the cost of beer—between 60 cents and one peso per unit—which could generate approximately 6.5 billion pesos in additional revenue.