Mexico defends soda tax to "consume less" for health reasons

This Friday, Mexican PresidentClaudia Sheinbaum defended the increase in the special tax on soft drinks (IEPS) and other sugary products, asserting that the measure is not for revenue-raising purposes, but rather for public health reasons, given the country's high rates of obesity and diabetes.

"This is accompanied by an information campaign by the Mexican government's Ministry of Health (…) on the effects that excessive consumption of sugary drinks and junk food can have. So, a campaign is coming. The goal is not to raise money, but to consume less," the President stated during "The People's Morning Conference."

Sheinbaum stated that childhood obesity has increased based on recent measurements from the federal "Live Healthy, Live Happy" program, which is applied to elementary school girls and boys.

"I've said it here, the level of diabetes, hypertension, and obesity among girls and boys in Mexico (…), it's been seen that the problem of obesity and diabetes has increased. And it's associated in many studies essentially with excessive consumption of what we call junk food and sugary drinks." he stressed.

The President explained that the tax increase—included in the 2026 fiscal package—aims to change consumption patterns.

"What's the goal? Well, if you spent 100 pesos on sugary drinks in a month, you'll continue spending those 100 pesos, but you'll buy fewer sodas. That's the goal: to consume less."

He emphasized that the Mexican government expects the industry to also reduce the sugar content in its products.

"If, in addition to that, we can get the soft drink companies to say, 'Well, we're going to reduce the production formula for Coca-Cola or other soft drinks or other sugary beverages by 30%,' it's doubly good, because in addition to consuming less, you'll be consuming less sugar per drink after a certain date," he noted.

Sheinbaum insisted that the measure is aimed at "the health of Mexicans," since the medium-term effects of diabetes on a person "are extremely serious."

Sheinbaum's statements come after her administration announced an agreement with the sugary beverage industry yesterday, Thursday, that includes a 30% reduction in the sugar content of soft drinks, restrictions on advertising aimed at minors, and a price differentiation between sugary and calorie-free beverages, in exchange for moderating the originally proposed increase in the special tax (IEPS).

In this regard, Eduardo Clark, Undersecretary of Integration and Development of the Health Sector, explained that the agreement was to maintain the IEPS tax at 3.08 pesos per liter for sugary beverages, but calorie-free versions will pay 1.50 pesos.

Clark stressed that the agreement was not made "on the sly" and that it will be verifiable.

"If we continue to see advertising featuring minors, they are clearly not complying, and the government has the tools to take stronger measures." warned.

Mexico is one of the world's largest consumers of soft drinks, averaging 166 liters per person per year, according to official data.

The consumption of sugary drinks is linked to the high prevalence of obesity and type 2 diabetes, the leading causes of death in the country.

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