Mexico’s federal government has announced a new tax on sugary soft drinks, citing their role in rising rates of diabetes, hypertension and other metabolic diseases that kill an estimated 100,000 people annually.
The country leads the world in per capita soft drink consumption, with Mexicans drinking 24 billion liters a year. “This epidemic of illnesses could collapse the health system in the medium and long terms,” warned Eduardo Clark, Undersecretary of Health Integration and Development.
Officials noted that in 1980, heart disease accounted for 60 of every 1,000 deaths. Today, the figure is 163. Treating conditions linked to sugary drinks costs the health system $9 billion USD annually, including dialysis for 100,000 patients at $22,000 per person.
President Claudia Sheinbaum emphasized that the tax is not meant to raise revenue but to curb excessive consumption, particularly among children. Still, the measure is expected to generate $2.2 billion, which will be directed to healthcare.
Mexico first taxed sodas in 2014, leading to a 5% drop in sales, but consumption has since rebounded to 166 liters per person per year. The government now estimates a 7% decline.
Global evidence supports such measures. In South Africa, soda intake fell 29% after a tax and in Chile, 21%. The U.K. saw a 30% cut in sugar content after reformulation. Currently, 119 countries use similar policies.
Clark stressed that sugary drinks offer “zero nutritional value” and remain the top source of sugar in the Mexican diet. “They don’t just cause obesity,” he said. “They mutilate, sicken and kill.”
IMSS-Wellbeing director Alejandro Svarch added the tax should also push industry to innovate. “We want companies to make increasingly healthier products,” he said.