Mexico’s sugar tax, one of the first in the world, will be raised by 40%. This courageous move addresses the country’s alarming rates of obesity and other healthcare inequities. The announcement follows on the heels of the introduction of the sugar tax in 2014. The intent of this tax was to lower the increasing sugary beverage consumption amongst Mexicans. Mexico intends to raise other taxes to bring in a projected $3.2 billion annually. This revenue will be directed to a health fund established entirely for the purpose of addressing noncommunicable diseases (NCDs) such as diabetes.
Mexico grappled with one of the world’s highest per capita consumptions of sugary drinks. Against this backdrop, the proposed tax increase has become a cause célèbre. According to the latest figures, one in three Mexican children is overweight or obese, making this a serious public health crisis. Sadly, diabetes recently passed up heart disease to become the second-leading cause of death in our country. It takes an estimated 23 million people—as many as 100,000 lives annually.
Health advocates have long argued that it’s important to increase the sugar tax. This is an important step forward to address the silent epidemic of obesity affecting millions of Americans. Senior health advocate Ramiro López Elizalde was clear about the necessity of the tax for creating new revenue. He focused attention on its impact on overall sugary beverage consumption.
“Obesity is the silent epidemic of our time. While drinks company executives make decisions on golf courses, millions are connected to a dialysis machine. The defenders of the soda industry say [the soda tax] is only about revenue. They are wrong. We seek to reduce consumption.” – Ramiro López Elizalde
To protect the public health, the Mexican government took this unprecedented step. This move is a great sign of their deep commitment to advancing equity, social, and environmental justice. López Elizalde pointed out that the same industries contributing to rising obesity rates are responsible for environmental pollution, particularly in water sources.
“This is not just a health crisis but about social and environmental justice. The same industry that makes our children sick pollutes our rivers. Human life is not a market, it is a right we must defend.” – Ramiro López Elizalde
The government’s decision to raise the sugar tax has been welcomed and met with condemnation from multiple sectors of society. Proponents think this new effort will prompt consumers to choose healthier products. Lastly, it seeks to lower the burden of obesity and diabetes on our healthcare system. Opponents argue these types of taxes are regressive, harming low-income families more, because they would need to switch from accessing cheaper sugary beverages.
The Mexican government is planning to reinvest the expected revenue from the sugar tax hike. They would like to expand community health worker programs and start advertising campaigns to encourage people to eat more fruits and vegetables. This approach is in line with trends around the globe. Around the world, countries are turning to taxation as a tool in their battle against health crises driven by diet and lifestyle choices.
Experts welcome the proposal of the sugar tax as a progressive step. They argue that broader, more complete approaches are needed to turn the tide on obesity and related health problems. Fellow public health champion Alison Cox brought attention to the urgent need to invest more in proactive health protection.
“We thought the moment had come. All the agreement [by governments] about investing in health protection is being lost to the interests of a few industries who are externalising the effects of their products on to economies.” – Alison Cox
Negotiations regarding the $2.00 tax hike are still in process. One thing is certain—Mexico is at a historic crossroads in its public health approach. The government’s commitment to addressing obesity and diabetes through fiscal policy underscores the urgent need for action in light of rising health concerns among its population.