Impuestos sobre las bebidas alcohólicas: Razón para cambiarlas

Abstract

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.