Mexicans Start Paying Tax On Ready-Made Food Jean Guerrero - KPBS.org
go to original July 4, 2015

Ready-made food at the Mexican convenience store Oxxo in Tijuana (Jean Guerrero/KPBS)

Starting this month, consumers must pay a 16 percent sales tax on pre-packaged and ready-made food sold at convenience stores. Food like pizza, hotdogs, sandwiches and burritos just got more expensive in Mexico.

The nationwide tax is Mexico’s latest move to rein in high obesity rates. In 2013, Mexico’s Congress approved separate taxes on sugary drinks and junk food.

The ready-made food tax is expected to have a disproportionate impact on Mexican border residents because of last year’s general sales tax hike for the region from 11 percent to 16 percent.

Gilberto Leyva Camacho, president of Tijuana’s Chamber of Commerce, said that sales tax didn’t go into effect for ready-made food at convenience stores until Wednesday.

“The people who are most going to be hurt by this are low-income consumers,” he said. “Many who are in a rush often buy a hotdog or a hamburger.”

Read the rest at KPBS.org

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