Mexican Government Approves Junk Food Tax
Mexico’s lower house has reportedly approved a new fiscal package that would,
among other things, tax high-calorie foods—such as chocolate, sweets, pudding,
potato chips, and ice cream. The new tax, which complements a planned charge
on sugar-sweetened beverages (SSBs) discussed in Issue 497 of this Update, is
part of a broader package proposed by President Enrique Peña and is expected
to pass in the Senate by the end of the October. According to news sources, the
proposed legislation would tax high-calorie foods—defined as those providing
275 calories or more per 100 grams—at 5 percent of the ticketed price and
chewing gum at 16 percent. The price of soft drinks would increase by about 8
cents per liter.
The move is supported by health experts who note that Mexico has one of the world’s highest rates of obesity, reportedly surpassing the United States, and who applauded higher prices for chips, candy and other foods they deem unhealthy. Opponents, many of whom liken the effort to New York City Mayor Michael Bloomberg’s so-called crusade to tax or limit SSB serving sizes, claim that it will negatively affect the business community, particularly mom-and-pop stores that rely on soft drink sales for their livelihoods. Other detractors observe that the items likely subject to the new taxes are those consumed by the poorest citizens, and they will pay disproportionately. See Los Angeles Times, October 18, 2013; Chicago Tribune, October 23, 2013.
