Mexico Senate Passes Tax on Soft Drinks

Mexican lawmakers have reportedly approved a 1 peso-per-liter tax (US 23 cents) on sugar-sweetened beverages (SSBs) and an 8 percent tax on junk food. The controversial legislation, which aims to curb rising obesity levels, was approved in a 73-50 vote and is expected to take effect January 1, 2014.

According to news sources, Mexico, whose obesity and diabetes rates surpass those of the United States, will be the first major market to tax SSBs, following a handful of other Latin American and European countries. Mexicans reportedly consume more than 700 8-ounce servings of SSBs annually. More details about the legislation appear in Issue 501 of this Update.