Sales Fall Again in Mexico’s Second Year of Taxing Soda

Feb 22, 2017 · 23 comments
Richard (Houston)
Peer reviewed research already shows that sugar is bad for us (https://www.mdanderson.org/newsroom/2015/12/sugar-in-western-diets.html).

If all of us have cancer cells in us (https://youtu.be/u4aWw8jCG8I), as Morgan Freeman's documentary suggests, and sugar nurtures existing tumors and helps them grow and spread throughout our body as stated above, then a tax that reduces the consumption of sugar can only be good.

I love dessert, but reading about this topic in the scientific literature has cut into this indulgence.

I suspect that the revenue savings will be 'huge' when health outcomes are included in the financial equation.
Domon (Venn)
I would have liked it if the author had examined whether smuggling has gone up to partially compensate for the drop in purchases. We know (and the NY Times has reported) that high cigarette taxes in places like NYC have led to a thriving black market. I'm sure some people are finding creative end-arounds to the tax.
Ed (Chicago)
If Cook County is serious of healthier citizens, then it will remove the ridiculous exemption for SNAP recipients regarding the soda tax. Why should someone buying soda with food stamps be exempt from paying the tax? Why does SNAP even cover soda in the first place?
Adira (<br/>)
What seems to be missing is how much the tax was as a percentage of the drink...why was this omitted?
Gwenael (Seattle)
Sugar is a slow killer and more people die of diseases related to poor diet like drinking sugary brands than smoking cigarettes .
It should be taxed at a higher rate and use the money for health care in states where Republicans are thinking of cutting Federal funding
bragg (los angeles, ca)
Bad for business, but good for people? Oh my, what to do? what to do?
DT (NYC)
Not surprising that people haven't gone back to sugared beverages. Once you get used to unsweetened drinks, it's hard to go back to soda. They are so cloyingly sweet that it's just not enjoyable.

As for no drop in the obesity rate, surely it's obvious that it will take time to reflect the decreased caloric intake in obesity rates, right? You don't drop huge weight overnight by cutting out soda, it's a gradual decrease that will take years to be obvious in the data.
elained (Cary, NC)
I hope the tax revenue is used for health care and information.
George (North Carolina)
Wait until Vegans take out after meat!!
paul (blyn)
Learn from history gang... a fair non onerous tax on "vices" always is the best way to go.

1-It keeps them legal, so crime is largely absent.
2-It garners revenue for the gov't without unduly burdening the vice industry.
3-Along with education will discourage the use of the vice.

It has worked in this country and/or other countries with things like drugs, prostitution, cigs, guns, gambling etc. etc..
caring feminist (New York City)
Mexico leading the way against the health-damaging effects of corporate greed! Viva Mexico!
Udayan (Hicksville, NY)
If sugar is the problem, would it not be better to simply impose a tax -- an excise tax -- on every unit of sugar produced? After all, sugar may be added to all kinds of food. If one gram of added sugar in soda is no more damaging than one gram of added sugar in, say, candy, why should soda be taxed and not candy??
Edward (Philadelphia)
Ae already know that taxation works. It's not a hint. Cigarette taxes proved that already.
Honeybee (Dallas)
I want to be excited by this news, but I can't be.
Soda sales are falling everywhere, as are the sales of breakfast cereals.
The tax has nothing to do with it.

The obese are simply buying sugary drinks that aren't sodas. Even at my school, the students are not bringing sodas to school; instead they're bringing giant coffee drinks from McDonald's or Starbucks that have a tower of whipped cream on top.

I guarantee the fall in soda sales corresponds with an increase in the sales of some other sugar-laden treat. Don't just tell half the story.
Alpha Doc (Maryland)
Hinting?

My goodness anyone who has followed tobacco sales and tobacco usage in the US has some idea of how taxes can influence consumption.

In 1964 right at 50 percent of adults in the US were regular addicted daily smokers. Today it is less than 17 percent. For a very tough addiction.

Taxes as much as or more than anything else is the reason
Jonathan (NYC)
Mexico? Can't you buy bootleg soda from cartels of dangerous criminals?
Andy (Washington DC)
Before 2014 sweetened soda was considered a food item and was not subject to the value added tax (IVA). It is now taxed at 16%. That 16% increase in price has lessened demand - which is what Econ 101 taught us many years ago.
Colenso (Cairns)
Opportunity costs such as taxes change behaviour. So-called public education programs don't.

Taxes have reduced smoking globally — not well meant, and almost totally disregarded, statements of the obvious about the harmful effects of smoking.

Ridicule and shaming also change behaviour. Platitudes do not.
Alpha Doc (Maryland)
Taxes as I said above are a big reason as far as tobacco consumption. But you over look the health education young kids are getting and the pressure they put on their parents.

The many and increasing indoor and even outdoor air no smoking regs that have been passed.

Jobs that no longer want to hire smokers. Folks that don't want to date them.

Social pressure on the smokers. Tobacco smokers in the US are like lepers from 100s of years ago ------as far as how they are looked at today.

Taxes are a big reason for the decrease. They are hardly the only reason.
Larry Karp (Atlanta, GA)
Soda taxes collected should be spent on unending nutrition education and public service messages. Philadelphia may be over reaching in attempting to fund from soda taxes pre-K expansion. Health indicators other than obesity rate decline such as improved insulin sensitivity and markers for non-alcoholic fatty liver disease are difficult measurements to determine but may be key in this ongoing debate.
Leti (Virginia)
People don't become obese from one month or even year to the next. By the same token people won't change from obese to normal weight so rapidly. It is a change in bad habits, of lifestyle, of healthy drinks and eating. So, don't be cynical Beverage Industry, this is a good beginning for the sick and sometimes bedridden obese. Good for Mexico!
NothingNew? (Amsterdam, The Netherlands)
Thank you, Dr. Lustig.
Todd Howell (Orlando)
Tax the sin and reduce consumption. Then buy into companies that sell powdered sugar (cook your own syrup), flavors, and carbonation devices. All of a sudden, its a hand crafted artisanal bespoke sparkling beverage that sells for twice the price, with no tax. Yeah!!!