Background on Key Figures and Relevance
The Mexican Secretariat of Finance and Public Credit (SHCP), led by Edgar Amador Zamora, recently addressed concerns regarding potential gasoline price increases. This statement comes amidst updates to the Impuesto Especial sobre Producción y Servicios (IEPS) published in the Diario Oficial de la Federación (DOF).
IEPS Update and Its Impact on Gasoline Prices
The SHCP clarified that the upcoming inflation-based IEPS adjustment for 2026 will not affect the gasoline price stabilization strategy initiated in March. This strategy is a voluntary agreement with gas station owners to keep regular gasoline prices below 24 pesos per liter.
The IEPS updates, as published in the DOF, include the following changes:
- Gasolina Magna: 6.45 to 6.70 pesos per liter
- Gasolina Premium: 5.45 to 5.65 pesos per liter
- Diesel: 7.09 to 7.36 pesos per liter
IEPS Revenue and Its Distribution
For 2023, the SHCP anticipates collecting approximately 473.279 billion pesos from the IEPS on gasolines, which accounts for more than half of the total expected revenue from all IEPS applied to other products and services, such as gaming, cigarettes, and sugary drinks.
Additional IEPS Adjustments
Further adjustments include the IEPS on sugary beverages like soft drinks and juices, as well as tobacco products. Starting next year, the IEPS will also apply to “light” and “zero” beverages at a lower rate than sugary drinks.
Another approved modification was an 8% IEPS on “violent” video games. However, President Claudia Sheinbaum recently announced that this tax would not be enforced due to the lack of clear criteria on identifying violent video games.
“It’s very difficult to differentiate between a violent video game and a non-violent one. So, how can you impose a tax? Who will determine that? Instead of taxing these games, we’ll focus on educating young people about the potential consequences of playing them,” she explained in her morning press conference.
Key Questions and Answers
- Q: Will the IEPS update lead to gasoline price increases? A: No, the inflation-based IEPS adjustment for 2026 will not affect the gasoline price stabilization strategy.
- Q: What other products and services will see IEPS adjustments? A: Sugary beverages, tobacco products, and video games deemed violent will experience IEPS changes.
- Q: Why was the 8% IEPS on violent video games ultimately not enforced? A: There are no clear criteria to distinguish between violent and non-violent video games, so the decision was made not to impose the tax and instead focus on educating young gamers about potential consequences.
