The government coffers benefited from the collection of the Special Tax on Production and Services (IEPS) that they make to products that harm health such as soft drinks, junk food, alcoholic beverages, beer and cigars.
At the end of 2022, IEPS income for these products totaled 180 thousand 578.2 million pesos, which meant 5.1 percent more than the income obtained in 2021, according to data from the Ministry of Finance and Credit. Public.
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One of the objectives of the collection of the IEPS in products that damage health is to reduce their consumption; however, the constant growth of the income that the government obtains from this tax demonstrates the opposite.
For example, the collection obtained by the IEPS that is charged on soft drinks and foods with a high caloric density, better known as “junk food”, left more than 64 billion pesos in 2022.
From the first, income was obtained for just over 34 billion pesos, an annual growth of four percent; while income from junk food amounted to 30 thousand 333.4 million pesos, that is, 9.8 percent more than in 2021 and in real terms, according to Treasury data.
According to the World Atlas of Obesity, Mexico ranked fifth worldwide and it is estimated that the figure will increase by 35 million adults for the next decade.
And although the IEPS charge is updated every year due to inflation, it is not a sufficient measure to reduce consumption. In 2022, Mexicans paid 1.39 pesos per liter; while for this year they will pay 1.51 pesos.
Another example that demonstrates that the application of the IEPS is not being such an efficient measure to reduce consumption, are the income obtained from the collection of IEPS on cultivated tobacco.
Of the total IEPS collected, 26.6 percent represented the collection of IEPS to tobacco products, leaving the treasury a total of 47 thousand 949.3 million pesos. In 2022 for each cigarette, consumers paid 0.55 pesos and in 2023 it rose to 0.60 pesos.
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Every year, during the discussion of the Economic Package, the representatives of the soft drink and tobacco industry seek that this IEPS does not rise any further, and although measures have been applied in recent years, the collection ends up reflecting that consumption does not stop .
