Mexican civil groups demand tax reform to tackle health crisis

Civil society groups in Mexico are urging the government to implement a tax reform centered on "healthy taxes." They argue that chronic underfunding of the healthcare system and the high cost of illnesses linked to products like tobacco and alcohol necessitate this change. The current public health system receives only about 2.8% of the GDP, falling far short of the World Health Organization's recommended 6% for universal, quality access.

The organizations highlighted that Mexico faces a high burden of chronic diseases, including diabetes, obesity, and cardiovascular conditions, which are associated with the consumption of tobacco, alcohol, and sugary drinks. These health issues significantly increase healthcare costs for both families and the state.

To address this budget deficit, the "Healthy Taxes" proposal suggests increasing taxes on harmful products such as tobacco and alcohol. It also calls for restructuring environmental taxes on carbon and vehicle ownership based on their polluting impact. The WHO notes that "healthy taxes" aim to raise prices, reduce consumption, and prevent diseases, while also serving as a cost-effective method for state revenue generation.

Economists pointed out a fiscal imbalance, noting that for every peso spent on reversing the health effects of tobacco, 4.9 pesos are spent, and for alcohol, 9.5 pesos are spent. They urged that revenue from these taxes be earmarked for specific health initiatives like IMSS-Bienestar, the National Care System, and water or preventive infrastructure. However, raising taxes is often politically unpopular, leading to delays in such discussions before official economic packages are finalized.