Crushing Taxes Threaten to Extinguish Mexico's Mezcal Tradition

Mezcal Crisis: High Taxes Threaten Oaxaca's Beloved Spirit The heart of Mexico's mezcal production, Santiago Matatlán in Oaxaca, is facing a crisis. New federal taxes are crippling small producers, threatening a centuries-old tradition. Azteca Noticias' recent report reveals the devastating impact on mezcaleros. Don Tacho, a master mezcalero with decades of experience, describes his daily struggle: "Daily, I'm in the field. It costs me, man, everything." His family's legacy is at risk due to the high tax burden. The report highlights that the combined tax rate—including IEPS and IVA—reaches 74%, making it nearly impossible for many to remain profitable. Noé Pérez Santiago, a factory manager, adds, "When we get to market, we have to pay the IVA, the IEPS… it all goes." This sentiment is echoed by Flor de María Velázquez, President of the Maguey and Artesanal Mezcal Association, who points out the lack of federal support despite the significant contribution of mezcal to Mexico's economy. In 2024 alone, over 11 million liters of mezcal were produced, with 90% originating in Oaxaca. Despite these challenges, the spirit of the mezcaleros remains strong. They are determined to preserve their craft and cultural heritage. The video concludes with a hopeful message, emphasizing the resilience of the community and the continued global demand for authentic Mexican mezcal.