Gasoline, soft drinks, and cigarettes will go up in price starting January 1, 2021

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As every year, the Ministry of Finance updated the IEPS quotas applicable to these products that are purchased daily by Mexicans

Mexico.- The cost of gasoline, cigarettes, and soft drinks will increase as of January 1, 2021, due to the update of the quotas for the special tax on production and services (IEPS).

What is the IEPS?

It is the tax that is paid for the production and sale or import of gasoline, alcohol, beer and tobacco, among other goods, mainly. Just as VAT is an indirect tax, because taxpayers do not pay it directly, but transfer it or collect it from their clients (except for imports) and the taxpayer only reports it to the SAT.

As dictated by the Law of the Special Tax on Production and Services, each year the Ministry of Finance updates the quotas applicable to processed cigars, automotive fuels, flavored beverages, and fossil fuels that are destined for the states.

Published in the Official Gazette of the Federation, the update factor established by the Treasury for 2021 is 1.0333 points, as a result of dividing the national consumer price index for November 2020, which was 108.856, with that of November 2019, which was 105,346, a procedure established in accordance with the provisions of Article 17-A of the Federal Tax Code.

The increases

In the case of Magna gasoline, the IEPS will go from 4.95 pesos to 5.1148 pesos per liter, and for Premium the tax will go from 4.18 pesos to 4.3192 pesos per liter. In both cases, it is an increase of 3.33 percent.

The quota for flavored beverages (soft drinks, bottled juices, energy drinks, etc.) will go from 1.2616 pesos to 1.3036 pesos per liter, an increase of 3.33 percent.

Finally, for cigars the IEPS goes from 0.4944 pesos to 0.5108 for each cigarette, an increase of 3.32 percent; In other words, if an average pack of 20 cigarettes cost 60 pesos this year, in 2021 it will have a value of 62 pesos.

Source: gob.mx/shcp/

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