<P> In September 2013, Mexican president Enrique Peña Nieto, on his fiscal bill package, proposed a 10% tax on all soft drinks, especially carbonated drinks, with the intention of reducing the number of patients with diabetes and other cardiovascular diseases in Mexico, which has one of the world's highest rates of obesity . According to Mexican government data, in 2011, the treatment for each patient with diabetes cost the Mexican public health care system (the largest of Latin America) around 708 USD per year, with a total cost of 778,427,475 USD in 2010, and with each patient paying only 30 MXN (around 2.31 USD). </P> <P> In September 2013, soda companies launched a media campaign to discourage the Mexican Chamber of Deputies and Senate from approving the 10% soda tax . They argued that such measure would not help reduce the obesity in Mexico and would leave hundreds of Mexicans working in the sugar cane industry jobless . They also publicly accused New York City Mayor Michael Bloomberg of orchestrating the controversial bill from overseas . In late October 2013, the Mexican Senate approved a 1 MXN per litre tax (around 0.08 USD) on sodas, along with a 5% tax on junk food . </P> <P> Research has shown that Mexico's sugary drinks tax reduced soft drink consumption . According to a 2016 study published in BMJ, annual sales of sodas in Mexico declined 6% in 2014 after the introduction of the soda tax . Monthly sales figures for December 2014 were down 12% on the previous two years . Households with the fewest resources had an average reduction in purchases of 9% in 2014, increasing to 17% by December . Furthermore, purchases of water and non-taxed beverages increased by about 4% on average . Whether the imposition of the tax and the resulting 6% decline in sales of soft drinks, will have any measurable impact on long - term obesity or diabetes trends in Mexico has yet to be determined . The authors of the study urged the Mexican authorities to double the tax to further reduce consumption . </P> <P> A 2016 study published in PLoS Medicine suggested that a 10% excise tax on soda "could prevent 189,300 new cases of Type 2 diabetes, 20,400 strokes and heart attacks, and 18,900 deaths among adults 35 to 94 years old" over a ten - year period . The study also included that "the reductions in diabetes alone could yield savings in projected healthcare costs of $983 million ." </P>

When does the sugar tax come into effect