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.
The country's health authorities say there are more than five million obese children in the country and a 9.2% incidence of diabetes among children.
"Obesity and diabetes are affecting school and work performances, and with it, the country's economic competitiveness," Mexico's Health Minister, Mercedes Juan, told reporters on Thursday, at the launch of a country strategy to tackle the problem.
More on this story here.
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