IEPS revenue from soft drinks rose 58%

The revenue from the Special Tax on Production and Services (IEPS) on flavored beverages such as soft drinks and juices grew by 58%, amounting to approximately US$2 million.

The increase in tax revenue resulted from the federal government's decision to raise IEPS taxes on products harmful to health, such as flavored beverages and cigarettes.

The increases in the IEPS on these harmful products have driven a rise in IEPS revenue from sources other than gasoline, which has grown by 9%.

The Secretary of Finance and Public Credit, Édgar Amador Zamora, has announced that the 9% increase in IEPS revenue has been driven by higher taxes on tobacco, flavored beverages, and other taxable products.

IEPS tax revenue from tobacco products increased by 8% during the first half of the year compared to previous collections, totaling approximately US$1 million.

As a result of the “healthy” taxes, the IEPS tax rate on flavored beverages such as soft drinks and juices has increased from US$9.5 to US$17.8 per liter.

For beverages containing sweeteners or sugar substitutes, the tax rate was reduced to between 0 and 0.087 cents per liter.

For cigarette packs, the ad valorem IEPS tax rate rose from 160% to 200%, while the per-cigarette tax increased from US$0.037 to US$0.049.