Mexicans blindsided with new food tax

June 30, 2015

If you fetch a quick quesadilla or hot dog in Mexico, expect to pay more very soon. Beginning July 1, the 16 percent value-added tax (VAT) will be added to popular prepared foods sold in supermarkets and convenience stores. The new federal tax will cover a variety of foods consumed by busy Mexicans who find less and less time to cook at home, including tortas, tamales, sandwiches, flautas, tacos, hot dogs, roasted chickens, and much more.

Food prepared and sold in restaurants has long been subject to the 16 percent VAT, but until now similar foods offered at commercial . . .

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