Mexican Legislature Sets Junk Food Tax at 8%
The Mexican Senate approved last week a new 8% sales tax on junk food. The tax was then endorsed by the Chamber of Deputies, which had earlier voted in favor of a 5% tax. The tax increase is expected to be signed into law by President Enrique Pena Nieto within the next month or two.
The 8% tax will be imposed on imported and domestic foods with 275 or more calories per 100 grams. Affected products include snacks, confectionery products, chocolate and other goods derived from cocoa, flans and puddings, fruit and vegetable candies, potato chips, peanut butter, hazelnut butter, ice cream, popsicles and sweetened breakfast cereals. There will also be a one peso (about eight cents) per liter tax on soft drinks.