Increase in IEPS will "punish" the entire juice chain

The proposed 87% increase in the Special Tax on Production and Services (IEPS) on sugary and caloric beverages, included in the 2026 Economic Package, represents a "fiscal punishment" for the industry and would have negative effects on the entire production chain, from the farm to the final consumer.

This was the opinion of Jonás Murillo, executive president of the National Chamber of the Canned Food Industry (Canainca), who emphasized that the tax cannot be absorbed by companies, so it will directly impact consumers, primarily the lower-income population.

"As outlined in the Fiscal Package, the IEPS will affect the entire juice and nectar chain," he stated in an interview.

Jonás Murillo explained that, by law, juices must be 100% fruit, so natural sugars cannot be eliminated, hence the tax penalizes the industry, without any clear benefit.

He noted that, in general terms, the beverage industry has worked to reduce sugar and calories, not specifically because of tax issues, but because they understand the importance of addressing this need.

The measure also affects agricultural producers, as it could reduce their sales volumes, since "apples that don't turn into juice end up staying on the tree or spoiling," he stressed.

"Obviously, when demand falls, production falls, and it eventually affects even the countryside. Another IEPS tax is also being imposed on fuels.

"That is, it's affecting the entire chain. From the moment you pick the fruit until you get the juice to the shelf, you're being recorded repeatedly for the same thing," he emphasized.

In the case of juices, the industry represented in Canainca generates around 60 billion pesos annually and consumes approximately 1.9 billion tons of fruit.

"That's the magnitude of the impact that a drop in consumption could generate," noted the Chamber's executive president.

Taxes without clear results

The executive president of Canainca considered that taxes have not been an effective measure to mitigate the population's health problems associated with the consumption of sugary and high-calorie beverages.

Since 2014, he continued, when the first IEPS was implemented, it was announced that the funds would be used to install school drinking fountains, improve sports facilities in schools, as well as health units for diabetes and cardiovascular disease, but it didn't happen.

"That money was allocated to current expenses, and there hasn't been the direct impact that the special tax, which is imposed for a specific purpose, is designed to achieve," he said.

The goal of the proposed new tax, he added, is to discourage the consumption of sugary drinks and non-caloric sweeteners to combat diseases such as obesity and diabetes.

The 2026 Economic Package proposes raising the IEPS tax on sugary drinks from 1.64 to 3.08 pesos per liter, representing an 87 percent increase. Regarding the impact on employment, Jonás Murillo indicated that they do not yet have a precise estimate of the number who could be affected, as the analysis is ongoing.

He even said they are currently in talks with legislators, explaining the impact the current proposal has, not only on the juice and nectar industry, but also on the agricultural sector and consumers. He argued that the obesity problem in Mexico is multifactorial, going beyond a tax issue. It's about finding joint solutions between industry, academia, and the health sector, focused on improving habits and strengthening nutritional education.