Smokers and consumers of soft drinks will fork out more this year, after new taxes kicked in January 1, raising the cost of a pack of 20 cigarettes by around four pesos and sodas by one peso a liter.
The federal government’s 2020 budget approved in October raised the Impuesto Especial sobre Production y Servicios (IEPS), a special tax applied exclusively for tobacco products, soft and alcoholic drinks and gasoline. The last time this tax was increased for cigarettes was in 2011.
The IEPS tax on gasoline will increase by 2.91, but consumers will scarcely notice any price change at the pumps, the Treasury Ministry says.