After a national Mexican survey on health and nutrition in 2012 found that seven out of 10 adults in the country were either overweight or obese, Mexican industrialists have been defending the role packaged food and beverage companies play in the national diet, according to the Wall Street Journal.
As diabetes and other chronic illnesses continue to rise in the country, politicians are forced to debate what steps the government could or should take to address a growing public health crisis.
Proposals on the table include a special 20 percent tax on sweet, fizzy soda--the beverage already carries sales tax-- or extending the 16 percent sales tax to all processed foods, according to the Wall Street Journal. Any expansion in food taxes is expected to be folded into the federal government's fiscal reform proposal, due in September.
Leaders at industrial chamber Concamin, makers of products such as deli meats, dairy goods and bottled beverages, argued Monday that nutritional education, portion control and exercise are the keys to trimming fat, not fiscal remedies.
According to Concamin, Mexico's food and non-alcoholic beverage industry represents more than 12 percent of gross domestic product and employs over 800,000 Mexicans.
According to the Wall Street Journal, Raul Riquelme, head of Concamin's health commission and head of institutional relations at processed food giant Alfam (ALFA.MX), said the country's food industry is committed to finding solutions.
"Obesity and excess weight is a subject that worries all of us Mexicans," Riquelme said.
According to the Mexico's National Academy of Medicine, low-income households make purchasing decisions based on consuming the most calories for the least amount of money. The Wall Street Journal reported industrialists worry that a bigger tax burden on processed food will foster growth in black market food items, possibly posing a threat to public health.
Marcela Torres, a senator with the National Action Party who has proposed a 20 percent tax on sugary soda. The move is aimed at slashing consumption by 26 percent while accruing close to $2 billion a year for the treasury. Mexico is the biggest consumer of carbonated beverages after the U.S., according to Euromonitor data.
Currently soda accounts for around 5.5 percent of Mexicans' daily calories. Studies show that while caloric intake has held steady in recent years, lifestyles have become increasingly sedentary in Mexico.
The Wall Street Journal reported industrialists promised that various big food companies are working to reformulate products, expand their offerings of healthy options and promote items in smaller package presentations.
