Mexican Congress Passes Tax Bill With Higher Junk Food Levy

Mexico’s congress increased a proposed junk food levy as it passed a tax bill championed by President Enrique Pena Nieto to reduce the nation’s dependence on oil revenue and promote growth.

The lower house voted 299-160 with one abstention yesterday to impose an 8 percent tax on high calorie foods, such as PepsiCo Inc.’s Cheetos, following the same decision by the Senate. The measure, which also raises income taxes and creates new duties on capital gains and sugary drinks, now awaits Pena Nieto’s signature. The senate version raised the tax on junk food from an originally proposed 5 percent.