Mexico

Mexico Passes Junk Food Tax

Government wants to use the extra cash on infrastructure and social security

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The Mexican Congress has approved a tax reform bill imposing new levies on junk food and soft drinks.

President Enrique Pena Nieto's project also aims to boost government revenue by increasing top earners' income tax.

The government says the extra cash will go on infrastructure and social security, but critics say it will hurt Mexico's sluggish growth.

Mexico recently surpassed the United States as the country with one of the highest obesity rates in the world.

A recent report by the United Nation's Food and Agriculture Organization (FAO) says that 32.8% of adult Mexicans are obese, compared to 31.8% of Americans.

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