Tax Updates and Allocation Details
According to the Miscellaneous Fiscal regulations included in the 2026 Economic Package, the amounts charged for the Special Production and Services Tax (IEPS) on tobacco and flavored beverages will be updated.
Key Players and Their Roles
Bertha Gómez Castro, the Subsecretary of Expenditures at the Secretaría de Hacienda y Crédito Público (SHCP), confirmed that the additional revenue generated from these “health taxes” will be directed to the health sector, despite no changes in law to specifically tag public resources.
Édgar Amador Zamora, the Head of Hacienda, clarified that these modifications to the IEPS and the creation of a tax on violent video games are not merely revenue-generating measures, but rather social initiatives.
Tax Adjustments and Their Impact
The IEPS on flavored beverages will increase from 1.6451 pesos per liter to 3.0818 pesos, while the IEPS on cigarettes will rise from a 160% to a 200% tax rate.
Amador Zamora emphasized that these changes aim to support a health strategy guided by the Secretaría de Salud, rather than solely focusing on revenue collection.
Budget Allocation for Healthcare
For the upcoming year, the proposed functional expenditure in healthcare is 965,663 million pesos, an increase of 84,203 million pesos compared to this year’s approved budget. This increase already incorporates the extra 41,000 million pesos expected from health taxes.
Additionally, an 8% tax is proposed on video games with violent content, aiming to generate 183 million pesos.
Special Healthcare Fund
Prior to the Hacienda conference at Palacio Nacional, President Claudia Sheinbaum announced that the extra revenue from health taxes will be allocated to a special healthcare fund.
This fund will focus on addressing health issues related to the excessive consumption of these goods, as stated by Sheinbaum.
Key Questions and Answers
- What is the purpose of the tax updates? The primary goal is not just to increase revenue but to create a social impact by discouraging the consumption of harmful products and generating funds for healthcare.
- How will the additional revenue be used? The 41,000 million pesos generated from these health taxes will be directed to the healthcare sector, supporting initiatives guided by the Secretaría de Salud.
- What is the proposed tax rate for violent video games? An 8% tax is suggested on video games containing violent content, aiming to raise 183 million pesos.
- How will the extra funds benefit public health? The special healthcare fund will focus on addressing health issues related to excessive consumption of harmful goods, such as tobacco and flavored beverages.
