Today (September 11), Mexico’s Secretariat of Finance and Public Credit proposed steep new levies on products considered to be unhealthy as part of a broad “healthy tax” initiative aimed at curbing harmful consumption and boosting revenue. The plan would raise the Special Tax on Production and Services (IEPS) on junk food, processed food, and fast food. It would also gradually increase tobacco taxes “by 200% through the year 2030,” alongside new per-cigarette quotas, VAT, and higher duties on hand-rolled cigars. The proposal also introduces taxes on nicotine pouches and e-cigarettes, tied to nicotine content.
Mexico is also considering increasing the taxes on online gambling, and taxing digital services and video games with violent content. Officials say the measures could generate 140 billion pesos ($757 million) annually while advancing President Claudia Sheinbaum’s goal of promoting healthier lifestyles.