Who pays for the damage from alcohol?

EstudioB, part of SinEmbargo Al Aire, has launched a new phase of its campaign #InDefenseOfTheConsumer, calling for higher taxes on alcoholic beverages in Mexico. The campaign highlights that while the alcohol industry generates huge profits, the costs of consumption, disease, premature death, violence, and poverty, fall heavily on families and the public health system. Experts stress that current taxes are among the lowest in the world and fail to reduce harmful consumption.

Representatives from Vital Strategies and Economics for Health explain that shifting from the current ad valorem tax (a percentage of product value) to a specific tax based on the amount of pure alcohol would both increase revenue and lower consumption. They point out that alcohol use is linked to more than 200 diseases, including at least seven cancers, and causes over 40,000 deaths each year in Mexico. The economic toll is staggering, estimated at 552 billion pesos annually, or 2.1% of GDP, far more than the alcohol industry contributes in taxes or jobs.

The campaign “Who pays for the damage from alcohol?” calls on Congress to include alcohol in Mexico’s 2026 package of health taxes, alongside tobacco and sugary drinks. Advocates argue that a well-designed tax reform could raise state revenues by 40% while cutting alcohol consumption by nearly 37%. More importantly, it would save lives, reduce violence, and ease the financial burden on the health system and households, especially those with lower incomes.

Find more from EstudioB, de SinEmbargo Al Aire (Mexico, September 2025)

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