A new 16% "luxury tax" on petfood in Mexico could lead to more abandoned and neglected dogs in Tijuana, according to a report.

The tax is meant to help ease Mexico's budget woes. Pet ownership is viewed by the government as a luxury, therefore making the petfood tax a "luxury tax."

Josh Pratter, director of Baja Dog Rescue in Tijuana, said the group has started to see the result of the tax on the abandoned dog population.

"We're seeing a larger dog on the street now. Bigger dogs are consuming more food so it's more costly to have a bigger dog. They want a smaller dog so the cost is less on a weekly or monthly basis for them," Pratter said.