Effective July 1, New Tax to be added to your favorite foods

IVA on food nowIn an effort to reduce obesity in Mexico (in 2013, Mexico overtook the USA to become the most obese country in the world according to a U.N. report), effective July 1, the government is adding a tax on all processed food, which are listed in the chart on the left.

Now every processed food that you buy from your neighborhood convenience store such as OXXO, Extra, 7-Eleven, etc, AND from taco, torta and burrito shops and stands and street hot dog vendors will charge an additional 16% IVA (value-added tax).

Maybe it’s time to say “Good-bye” to burritos and nachos, and say “Hello” to fruits and vegetables. Or, you’ll now be forced to dig a little deeper in those pockets….

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