Global Economy: MOOC Critical Thinking

Analysis of the official resolution to implement IEPS tax

EGADE MBM
Raúl Montalvo

Jonathan Villicana A00354882

Sugar-sweetened beverage tax to lower obesity

“The high consumption of sugar-added beverages contributes notoriously to excess

energy intake and is an important factor in the development of overweight and obesity in
Mexico, representing a call to define public policies that favor the reduction of sugar-added
beverage consumption.

Considering that the high prevalence of overweight and obesity represents an enormous
public health issue in Mexico, having a State policy to change the eating and physical
activity patterns Mexican society, the Ministry of Health is currently instrumenting a
“National strategy for obesity and diabetes control”. The purpose of this initiative is to
comply with the strategies established by the “National Development Plan 2013-2018”, in
reference to “making protection, promotion, and prevention actions the core pillar for the
improvement of health”, thereby following the respective courses of action, such as:
reducing morbidity and mortality caused by non-contagious chronic diseases such as
hypertension and diabetes, and to instrument actions for the prevention and control of
overweight, obesity and diabetes.

Given the problematic high prevalence of these diseases and their impacts, it is
essential to reinforce effective policies and programs for obesity prevention. In this sense,
any effort to diminish the adverse effects of this situation and the cost involved for its
treatment should be analyzed not only from a purely public health policy, which is why a
fiscal measure will most likely contribute to the aforementioned purposes.

In this sense, the present initiative proposed to Mexico’s Congress is to levy an IEPS
(Special Tax on Products and Services) tax, by setting, at the producer and importer level, a
specific rate of 1 Mexican peso per liter of flavored beverages, including concentrates ,
powders, syrups, flavor extracts or essences that when diluted produce flavored beverages
that contain any type of added sugars.
 1. What are the arguments of the DOF article?
The arguments in the DOF article are as follows:
• The current high consumption of beverages with added sugars contributed
significantly to excess energy intake in the Mexican population. This excess energy is
an important contributor to the development of obesity found amongst Mexico’s
population.
• The article states the “high prevalence of these diseases” is an essential public health
crisis in Mexico. Furthermore, the article calls for the government to enact policies
and programs that change patterns of food and physical activity in Mexican society.
• The main argument being made by the article is a tax on beverage with added sugars
would help act as a solution to the two bullet points above.
2. Which consistencies or inconsistencies did you find in the document?
One of the inconsistencies with the article is the emphasis and blame it places on beverages
with added sugar as a factor in obesity rates in Mexico. The article does not consider other
factors, such as, food consumption, lack of exercise, or other beverages that can severely
contribute to obesity.
Another inconsistency is the failure to acknowledge physical activity needed to reduce
obesity rates. The article states that a tax on these beverages with added sugars will reduce
obesity rates, but even with a tax it is still very plausible that obesity rates will remain
unchanged.
3. Which biases or errors did you find in the arguments (bad arguments, fallacies,
omissions, false inferences and deceptive statistics)?
The errors and biases found in the article are:
• One error in the article is in the first line. The article states “high consumption of
sugar-added beverages contributed to…. Obesity” but fails to define what high
consumption is. The term is relative and to specific audiences it will mean different
amounts.
• Another error is the generalization of all sugar-added beverages. The market is filled
with various products and each product can contribute to obesity levels at different
rates. One beverage may play a significant role, while another a minor one
 • Every consumer is different, and the article fails to address that. Again with a
generalization the article lumps all consumers together failing to discuss
characteristics on a micro-level.
• As discussed earlier the article fails to account for junk food and a lack of exercise as
a contributor to obesity levels in Mexico’s population
4. Can conclusions be drawn from the arguments?
Conclusions cannot be drawn from the article because of the numerous biases and errors that
exist within the article. There are too many inadequacies for the reader to make a judgment
on whether an IEPS tax on sugar-added beverages would benefit or aid in obesity levels in
Mexico.
5. Is the person’s point of view derived from his or her research?
Yes, the person’s point of view can clearly be noticed. Based on the biases, errors, and lack
of information regarding the issue, the person’s point of view on the issue can clearly be
identified.
6. How are you ordering your own arguments (to avoid being unfocused)?
I am ordering my own argument by utilizing the foundation of critical thinking and analyzing
all possible variables that can contribute to the topic. Furthermore, I remain unbiased in my
analysis and consistently consider “Who, What, When, Where, Why, and How?”. By doing
this I remain focused to discovering what the root cause in obesity levels are in Mexico and
compare that to the solution being offered in the article.