Overview and Relevance
The Mexican government, under President Claudia Sheinbaum’s administration, plans to collect 473.279 billion pesos in 2026 through the Special Production and Services Tax (IEPS) applied to gasolinas. This amount will represent 62% of the total IEPS collected from various sectors, including gaming, flavored beverages, tobacco, and telecommunications.
IEPS Adjustments for 2026
Although the IEPS on gasolinas will see an increase in 2026, the Federal Tax Income Law (LIF) 2026 shows a reduction of 6.7% compared to the expected collection for gasoline taxes this year.
- Magna gasoline IEPS will rise from 6.45 to 6.70 pesos per liter.
- Premium gasoline IEPS will increase from 5.45 to 5.65 pesos per liter.
- Diesel IEPS will go from 7.09 to 7.36 pesos per liter.
Historical Context of IEPS
The Center for Economic Research and Budget Studies (CIEP) notes that the IEPS has historically provided fiscal incentives to stabilize fuel prices and control inflation within the country.
Recently, the government removed fiscal stimuli from gasolinas, causing motorists to pay full IEPS during the December holiday period.
Impact on Gasoline Prices
Following the announcement of IEPS quota adjustments, the Secretariat of Finance and Public Credit (SHCP), led by Edgar Amador Zamora, clarified that these changes will not affect gasoline prices.
The SHCP emphasized that the inflation-based adjustment starting in 2026 does not impact the gasoline price stabilization strategy initiated in March.
The Gasoline Price Stabilization Strategy was a voluntary agreement with gasoline retailers to keep regular gasoline prices below 24 pesos per liter.
“The inflation-based adjustment for this fuel, effective January 1st, will not affect the strategy in any of its components and will not translate into increased costs for consumers,” explained SHCP.
Other Changes in 2026
In addition to gasoline IEPS adjustments, other changes include updates to quotas for sugary beverages and tobacco products, labeled as “health-focused taxes”.
“In 2026, health-focused taxes will be established to discourage the consumption of products that negatively impact the physical and mental health of the population,” detailed Hacienda in the General Criteria of Economic Policy 2026.
- Sugary beverage quotas will rise from 1.6451 to 3.018 pesos per liter.
- IEPS will now be applied to light and zero-calorie beverages at a lower rate of 1.5 pesos per liter.
- For hand-rolled tobacco, the ad valorem rate will increase from 160% to 200%, and the rate to discourage gambling usage will rise from 30% to 50%.
Video Game Tax Controversy
Another approved modification for 2026 was an 8% IEPS on “violent” video games; however, President Claudia Sheinbaum recently announced that it would not be enforced due to the lack of clear criteria on which video games are considered violent.
“It’s very difficult to differentiate between a game with violence and one without. So, how can you impose a tax? Who will determine that situation? Therefore, we decided not to collect the tax and instead focus on campaigns for young people and adolescents about where these types of games can lead them,” Sheinbaum explained in her morning press conference.
Ricardo Monreal, coordinator of Morena’s faction in the Chamber of Deputies, clarified that the President does not have the authority to annul the tax and that Congress must approve the modification to eliminate it.
“The President has made a reflection that we agree with… Congress must amend the LIF and repeal the article so that this 8% rate is not applied… Once we begin the formal process and receive the initiative to remove this tax, we will proceed promptly to vote on its repeal,” Monreal informed.
