MXThe Mexican Congress is considering increasing the Special Tax on Production and Services (IEPS) on tobacco products as part of a broader economic package. The proposal was announced by Carol Antonio Altamirano, head of the Finance Committee in the Chamber of Deputies, who stated they will review measures aimed at improving health and increasing revenue. Industry representatives have rejected the measure, citing concerns over increased black market activity and extortion against small businesses. Reports indicate that nearly one in four cigarettes consumed in Mexico comes from illegal markets, and organized crime has reportedly extorted small retailers to sell counterfeit tobacco. The proposed tax increase mirrors policies seen in Australia, where similar measures initially reduced smoking but led to a surge in illegal tobacco trade. The Senate recommended freezing the tax due to these risks.
Bias read (Center): While the article discusses a politically sensitive issue, taxation of tobacco, it presents both the government’s consideration of the tax increase and industry opposition without overtly favoring either side. It includes perspectives from lawmakers, industry groups, and academic experts, providing a較
