Introduction to the Proposal
The Mexican federal government has included in its 2026 Economic Package a proposal to tax violent, extreme, or adult-oriented video games with an 8% Impuesto Especial sobre Producción y Servicios (IEPS). This tax will apply to both physical format and digital services, offered by national or foreign companies without a local presence in Mexico.
Background and Relevance
Claudia Sheinbaum, the President of Mexico City, defended this initiative by emphasizing its preventive nature aimed at protecting minors. The tax is not intended to prohibit the acquisition but rather to serve as an inhibitor for consumption. The government argues that this measure will encourage consumers to reflect on the content they purchase and consume, promoting more informed choices.
Current Video Game Landscape in Mexico
According to a study by The Competitive Intelligence Unit, cited by the federal government, the three most popular video game genres in Mexico are action/adventure, strategy, and shooters. Of the top five most demanded games since 2021, four fall under violent genres.
The Mexican video game industry has experienced significant growth, surpassing USD 2.3 billion in 2024 and amassing over 76 million active players. This places Mexico as the tenth-largest gaming market globally and the largest in Latin America.
The National Survey of Audiovisual Content Consumption in 2024 indicates that 26% of Mexican gamers play shooting games, and 25% engage in fighting games. Among children and adolescents, the consumption is also substantial: 17% for shooting games and 26% for fighting games.
Concerns Regarding Minors’ Access
Despite the popularity of video games, there are concerns about minors accessing C and D classified games through digital means. The exposition of motives in the proposed legislation states, “Mexico sees a significant number of children and adolescents playing video games classified as C and D, obtained through digital access and downloads, bypassing adult supervision.”
Legal Changes and Implementation
The proposal includes amendments to Article 2 of the IEPS law, classifying violent, extreme, or adult-oriented video games as taxable items with an 8% rate. Additionally, Article 5-A BIS mandates digital intermediation platforms to withhold the corresponding tax.
Article 20-A imposes obligations on foreign service providers without a local presence in Mexico, requiring registration with SAT, designation of a legal representative, and reporting user information to the authority.
Projected Impact
According to the 2026 Income Tax Law project, this tax on violent video games is expected to generate approximately 183 million pesos in its first year. The exposition of motives highlights that the tax policy aims to decrease violent video game consumption in Mexico and secure resources to internalize associated health costs.
Key Questions and Answers
- What is the proposed tax rate? The Mexican government proposes an 8% IEPS (Impuesto Especial sobre Producción y Servicios) on violent video games.
- Which video game genres are targeted? The tax targets violent, extreme, or adult-oriented video games.
- What formats will be taxed? Both physical format and digital services, including access or download, are subject to the tax.
- Who will be affected by this tax? National and foreign companies offering the targeted video games, regardless of local presence.
- What is the projected revenue from this tax? The government estimates approximately 183 million pesos in the first year of implementation.
- What is the purpose of this tax? The tax aims to decrease violent video game consumption among minors and secure resources for associated health costs.
