Introduction to the 2026 Economic Package
The Mexican Secretariat of Finance has introduced a series of non-fiscal tax measures in the 2026 Economic Package, aiming to discourage consumption of products deemed harmful to the physical and mental health of the population. These measures include new taxes on violent video games and online gambling, as well as increased taxes on flavored beverages, tobacco, and sugary drinks.
Key Tax Increases in the 2026 Economic Package
- Violent Video Games: A special 8% tax will be imposed on digital video game services featuring violent content.
- Online Gambling: The tax rate for online gambling will rise from 30% to 50%.
- Sugary Drinks: The Impuesto Especial sobre Producción y Servicios (IEPS) on flavored beverages will increase to 3.08 pesos per liter, including zero-calorie sweeteners.
- Tobacco: The ad valorem rate for manufactured tobacco will rise from 160% to 200%. A gradual increase in the specific duty will be implemented until 2030, with a transition period from 2026 to 2029. Additionally, new nicotine-containing products, known as “nicotine pouches,” will be incorporated into the tax scheme.
Rationale Behind Tax Increases
The administration of President Claudia Sheinbaum argues that these industries generate significant social and economic costs, including obesity and diabetes linked to sugary drinks, isolation and anxiety associated with intensive video game use, and financial losses for families due to the growth of digital gambling houses.
Health Risks Associated with Targeted Products
- Violent Video Games: Recent studies have found a correlation between violent video game usage and increased aggression among adolescents, as well as negative social and psychological effects such as isolation and anxiety.
- Sugary Drinks: High consumption of these beverages has contributed to 76.2% of the population aged 20 and over having overweight or obesity, conditions linked to diseases like diabetes, heart problems, cancer, osteoarthritis, and metabolic disorders.
Funding Public Health Initiatives
These proposed tax increases aim to generate a special fund for public health, covering part of the annual healthcare costs related to diseases caused by sugary drink consumption, tobacco use, and other addictions. The estimated annual cost for these diseases is 116,000 million pesos.
Next Steps and Reactions
If approved by Congress, these measures will take effect starting the following year as part of the “healthy taxes” chapter in the 2026 General Criteria for Economic Policy.
Key Questions and Answers
- What is the purpose of these tax increases? The aim is to discourage consumption of products harmful to public health and generate funds for public health initiatives.
- Which products are targeted by these tax increases? Violent video games, online gambling, sugary drinks (including those with zero-calorie sweeteners), and tobacco.
- How much will the taxes on these products increase? The special tax on violent video games is 8%, online gambling taxes will rise from 30% to 50%, and the IEPS on flavored beverages will increase to 3.08 pesos per liter.
- What is the estimated annual cost for diseases related to these products? 116,000 million pesos.
- When will these tax increases take effect? If approved by Congress, they will start applying from the following year.
