Mexico has announced a near doubling of its tax on sugary drinks, from 1.64 pesos to 3.08 pesos per litre, as part of the 2026 budget unveiled on Monday. The move aims to tackle the country's high consumption of fizzy drinks—averaging 166 litres per person annually—and related health crises, including obesity and diabetes, which causes 100,000 deaths a year.
President Claudia Sheinbaum stated the goal is to reduce soft drink consumption, with health authorities predicting a 7% decrease in soda consumption within two years. The tax hike follows previous measures, including a 10% tax in 2014 and warning labels on high-sugar products, as well as a ban on junk food in schools earlier this year.
The policy has divided opinion. Supporters, like public policy analyst Viri Ríos, call it an “extraordinary” and necessary step to improve public health. However, critics, including economist Valeria Moy, argue it is primarily a revenue-raising scheme, with no guarantee of reduced consumption. The government expects the tax to generate 41bn pesos ($2bn), which it says will fund health initiatives such as a media campaign, disease monitoring, and increased dialysis coverage.
Health Minister David Kershenobich outlined plans for the funds, but analysts note the budget lacks specific allocations, raising concerns about transparency. Public health analyst Xavier Tello dismissed the health benefits as unproven, warning the tax will mainly burden consumers financially.
