Mexico’s Soda Sugar Deal with Government

Mexico City — The Government of Mexico and the soft drink industry have reached an agreement following controversy over new taxes on sugary beverages, President Claudia Sheinbaum confirmed during her morning press conference.

The president indicated that David Kershenobich, the Secretary of Health, will appear before the Chamber of Deputies to detail the terms of the pact reached the previous evening.

"I do not want to get ahead of it because an agreement was just reached last night. And it is important because ultimately what interests us is health. Therefore, a good portion of the IEPS that had been proposed is maintained. But there is a recognition by the soft drink manufacturers that it is essential to lower the sugar content in sugary beverages," Sheinbaum explained.

The IEPS Tax on Sodas and Beverages is Maintained

According to the information revealed, a significant portion of the Special Tax on Production and Services (IEPS) that the Government had proposed in the 2026 Economic Package will be retained, albeit with adjustments agreed upon with the industry.

In exchange, soft drink companies will reduce the sugar content in their products as part of a national health strategy promoted by the Secretary of Health.

On September 11, the Secretary of Health had announced a set of healthy measures aimed at reducing the consumption of sugary beverages by up to 7% during the first two years of implementation. These measures are part of the "Live Healthy, Live Happy" policy, which seeks to raise public awareness and prevent chronic diseases such as diabetes, hypertension, and obesity.

Agreement with a Focus on Public Health

With this new pact, the federal government seeks to balance tax revenue and the health of Mexicans, while the soft drink industry commits to reformulating its products to make them healthier.

President Sheinbaum emphasized that dialogue with the business sector was key to reaching a consensus in favor of social well-being, stating that "it is not only about taxes, but about changing habits and caring for the health of the people."