Headline: Mexico‘s IEPS Increase: How It Will Impact Your Wallet in 2025
The last days of 2024 marked a significant shift in Mexico’s economy with the announcement by the Secretariat of Hacienda y Crédito Público (SHCP) of an adjustment to the Impuesto Especial sobre Producción y Services (IEPS). This increase directly affects the cost of gasolinas, diésel, and other consumer goods such as sugary beverages, alcoholic drinks, cigarettes, candies, and more. Starting January 1, 2025, these changes will be reflected in the wallets of people across the republic.
Impact on Smokers:
The published announcement in the Diario Oficial de la Federación (DOF) reveals that the tax applicable to tobacco products will rise to more than 64 cents per cigarette. Consequently, the price of a pack of 14 cigarettes could increase by up to 8 pesos, while a pack of 20 would reach an additional 12 pesos. This will undoubtedly hit smokers hard as they face the prospect of paying more for their habit.
Impact on Beverages:
The new tax will also affect우vg| bebidas saborizadas, with a levy of 1.6 pesos per liter. This means that bottles of soda could see an increase of 1 to 5 pesos, depending on their size and the brand. This might lead consumers to reassess their spending on these items.
Impact on Fuel Prices:
The IEPS adjustment will have the most significant impact on fuel prices. Here’s how much each type of fuel will increase per liter:
- Gasolina menor a 91 octanos (Magna): 6.4 pesos
- Gasolina mayor o igual a 91 octanos (Premium): 5.4 pesos
- Diésel: 7 pesos
- Combustibles no fósiles: 5.4 pesos
These increases will directly influence the applicable taxes for consumers starting January 1, 2025:
- Gasolina menor a 91 octanos (Magna): 56 cents per liter
- Gasolina mayor o igual a 91 octanos (Premium): 69 cents per liter
- Diésel: 47 cents per liter
The Role of IEPS:
The IEPS is an indirect tax levied on the importation and sale of goods and services. Its primary objective is to raise fiscal revenues and regulate sectors that include products considered harmful to health, such as sugary drinks, cigarettes, and alcoholic beverages.
In conclusion, the IEPS increase will have a ripple effect on various consumer goods and services, with fuel prices and cigarette costs being the most significantly impacted. As we step into 2025, it’s essential for consumers to be aware of these changes and adjust their spending habits accordingly.
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