Mexico: Parliamentary Plans to Raise Alcohol Tax
The Mexican parliament is planning a tax increase for alcohol and other health harmful products such as tobacco and sugary drinks.
The president of the Budget Committee of the Chamber of Deputies, Alfonso Ramírez Cuéllar, speaking about the tax increase emphasized that this would have important benefits for the health of Mexicans, as well as for the tax collection of the country.
[i]f we compare the health damages caused by these products and the costs they generate in medical care, against taxation and the exorbitant profits of the companies that produce them, the result is unfair and inequitable and the most affected are the poor,” said Alfonso Ramírez Cuéllar, the president of the Budget Committee of the Chamber of Deputies, as per the Mazatlan Post.
He added that the tax increases would have important health benefits for Mexicans by reducing consumption.
According to data from the National Institute of Statistics and Geography (Inegi) of 2017, the main causes of death are heart disease (20.1%), Diabetes Mellitus (15.2%) and Malignant Tumors (12%).
As Mr. Cuéllar, states these diseases – representing one of the leading causes of death in Mexico – do not have sufficient resources for prevention and treatment. Therefore, the approach to raising taxes is critical, especially given the health, social and economic harm across society.
The Special Tax on Production and Services (IEPS) needs to be updated, according to Mr. Cuéllar to apply to alcohol, tobacco, sugary drinks, and junk food. As well as reviewing their allocation, in order to face epidemiological emergencies, such as obesity, diabetes and cancer, which undoubtedly have repercussions in the budget of the Health System.
Alcohol harm in Mexico
© WHO Global Alcohol Status Report 2018
Binge alcohol use is a harmful trend observable in Mexico. WHO reports almost two thirds of alcohol using young boys between 15 to 19 years engage in this behavior and over half all alcohol using Mexican men over 15 years binge on alcohol.
In Mexico, alcohol is attributable to:
- 16,000+ deaths due to liver cirrhosis,
- 4,700+ deaths due to road traffic injury.
- 2,500+ deaths due to cancer.
Tax increases such as planned by the Mexican parliament are known as cost-effective alcohol control policy measures recommended by the WHO. The Mexican government can also further strengthen the national alcohol control policy through improving restrictions on alcohol sales and the regulation of marketing.