The Mexican tax on alcoholic beverages : reasons to change it
Anel Rodríguez Quinto y Luis Antonio Foncerrada Pascal
Excessive consumption of alcoholic beverages causes addiction, damages people’s health and has disrupting social and family consequences. Given that, many countries impose other taxes on these products in addition to sales tax. The ways to apply these taxes are different, however, they are based on two basic principles: Ad-Valorem[1] or Ad-Quantum[2]. In the case of Mexico, the Special Tax on Production and Services (IEPS) for alcoholic beverages is based on an Ad-Valorem system with different quotas according to alcoholic content. Thus, combines the two principles. However, with this system, lower quality beverages with high degrees of alcohol are among the cheapest on the market, curtailing the objective of the tax. We have tested the change to the Ad-Quantum system, to measure government revenues and regressive effects. Our findings indicate that tax collection would increase with no regressive effects. [1] System in which the value of the product is taxed. [2] System in which the alcoholic content of the drink is taxed.
Alternative title: | Impuestos sobre las bebidas alcohólicas |
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Year of publication: |
2022
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Authors: | Rodríguez Quinto, Anel ; Foncerrada Pascal, Luis Antonio |
Published in: |
Economía teoría y práctica. - México, DF : [Verlag nicht ermittelbar], ISSN 2448-7481, ZDB-ID 2517303-0. - Vol. 30.2022, 57, p. 193-214
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Subject: | Tax | alcoholic beverages | ad-Quantum system | health risks | tax collection | Mexiko | Mexico | Alkoholsteuer | Alcohol tax | Alkoholkonsum | Alcohol consumption | Gesundheitsrisiko | Health risk | Besteuerungsverfahren | Taxation procedure | Alkoholisches Getränk | Alcoholic beverage |
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