La Jornada: They propose modifying IEPS for wines and liquors to tax alcohol level and not price

The Commission for the Wine and Spirits Industry (Civyl) proposed reforming the special tax on production and services (IEPS) scheme, applied to alcoholic beverages, in order to transition from the current model to value (based on sales price) to a scheme to what extent (determined by volume and alcohol degrees).

According to the organization, this modification seeks to align with the recommendations of the World Health Organization on public health, by discouraging the consumption of low-cost, high-alcohol beverages.

Three weeks before the 2027 Economic Package is delivered, the sector indicated that taxing beverages based on their alcoholic content would generate additional revenue estimated at 3.9 billion pesos combined between IEPS and VAT, without increasing the global tax burden.

Panambí Garcés, general director of Civyl, maintained that under the current system, an economical high-proof alcoholic beverage can pay less taxes in absolute terms than a formal product with aging processes, certifications or designation of origin, which generates competitive distortions against small producers and artisanal distillates.

Alert for informal consumption

The organization warned about the impact of the informal market in the country. In 2023, 44.2 percent of the volume of distillates consumed in Mexico corresponded to the informal market (around 21.8 million nine-liter boxes), while between 2020 and 2023, consumption in this sector increased 54.9 percent, compared to an increase of 28.5 in the formal market.

Likewise, evasion for this item amounts to about 19.5 billion pesos annually, while the actual collection of IEPS on alcoholic beverages (not counting beer) registered a drop of 7.3 percent between January and June 2026, citing data from Euromonitor International.

The proposal was addressed to the Ministry of Finance and Public Credit, the Ministry of Health and the Chamber of Deputies for consideration within the budget and tax debate for the next fiscal year.