Mexico: Morena seeks to increase the tax on junk food, soft drinks, alcohol, and tobacco

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The deputy Alfonso Ramírez Cuéllar emphasizes that this would have important benefits for the health of Mexicans, as well as for the tax collection of the country.

The president of the Budget Committee of the Chamber of Deputies, Alfonso Ramírez Cuéllar, spoke because the collection derived from the collection of the Special Tax on Production and Services (IEPS) on sugary and alcoholic beverages, as well as junk food and cigars, increase progressively.

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He warned that, “if 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. “

He also said that “the proposed increase for fiscal year 2020 of taxes on tobacco, alcohol, sugary drinks and non-essential foods high in energy density, would have important benefits in reducing consumption and health.”

He insisted that in this environment, the approach to updating taxes is important, especially in those products associated with problems of overweight and obesity, causing diseases, whose prevention and treatment represent an important burden for the federal treasury.

“These diseases, in addition to representing one of the leading causes of death in our country, do not have sufficient resources for prevention and treatment,” he said.

He said that 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%).

For this reason, he considered necessary the update of the IEPS that applies 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 some have repercussions in the budget of the Health System.

He pointed out that in IEPS the collection in Mexico reaches 5.9%, while the average of the Organization for Economic Cooperation and Development (OECD) is 10.8%, which means the lowest collection within the countries belonging to this international organization, with the substantive effects on the national economy and the life of all Mexicans.

He considered that by 2020, an update of taxes associated with the consumption of products that lead to the prevalence of chronic degenerative diseases should be contemplated, in order to reduce their consumption.

Source: notimex

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