They warn of insufficient taxes to reduce consumption of harmful products • News • Forbes México

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Civil organizations warned that the tax reform proposed by the Chamber of Deputies regarding the Special Tax on Production and Services (IEPS) is insufficient to reduce the consumption of products harmful to health and, on the contrary, could open the door to the indirect legalization of vapers and other devices with nicotine.

In a joint position, Salud Justa Mx and the México SaludHable Coalition – which brings together more than 60 organizations – asked legislators to adjust the project in accordance with international recommendations on healthy taxes.

Among the main points, they highlighted that the proposed tax on cigarettes does not comply with the standard suggested by the World Health Organization (WHO), which recommends a minimum tax of 3 pesos (0.16 dollars) per cigarette.

Read: Casino industry warns that a 50% IEPS charge would unleash informality and stop investments

Likewise, NGOs warned that by including taxes on nicotine products, the initiative “could indirectly legalize vapers,” despite the fact that their commercialization is prohibited by resolution of the Supreme Court.

The organizations also denounced that the ruling would allow the legal entry into the market of novel products such as nicotine pouches and heated tobacco, in addition to the fact that the proposed scheme would generate an unconstitutional double tax that would give room for the tobacco industry to evade payment.

“It is positive that an increase in the ad valorem tax (a tax that is calculated as a percentage of the value of a good, service or transaction) is contemplated from 160% to 200% for cigarettes and other tobacco, as well as annual increases to the specific IEPS between 2026 and 2029,” the statement said.

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Likewise, the entities pointed out that betting on the most cost-effective policy to reduce consumption “is a success that comes from the proposal presented by President Claudia Sheinbaum.”

However, they considered it unacceptable that the initiative does not include an increase in the tax on alcoholic beverages, which – according to their estimates – cause around 42,000 deaths a year and generate social and health costs of 552,000 million pesos (about 29,870 million dollars).

The organizations called on the Senate and the Chamber of Deputies to correct the opinion before its final approval within the framework of the discussion of the 2026 Economic Package.

With information from EFE

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