Key Cigar Brands and Price Changes
The price of cigarettes will rise more than 20% starting January 1, 2026, due to an increase in the Impuesto Especial sobre Producción y Servicios (IEPS) that was approved for 2026.
- Pall Mall (pack of 20 cigarettes)
- Current price: 80 pesos
- Price from January 1: 96 pesos
- Percentage change: 20.0%
- Camel Yellow (pack of 20 cigarettes)
- Current price: 77 pesos
- Price from January 1: 87 pesos
- Percentage change: 13.0%
- Camel Original (pack of 25 cigarettes)
- Current price: 65 pesos
- Price from January 1: 78 pesos
- Percentage change: 20.0%
- Winston (pack of 25 cigarettes)
- Current price: 50 pesos
- Price from January 1: 61 pesos
- Percentage change: 22%
Why Are Prices Increasing?
As part of the 2026 Economic Package, Congress approved the increase in the IEPS rate that is charged on the sale or import of cigars, cigarettes, and other manufactured tobacco products from the current 160% to 200%.
Additionally, the approval was given for the update of the additional quota charged per cigarette sold or imported, which increased from 0.6445 pesos in 2025 to 0.8516 pesos for 2026, with a gradual increase until 2030.
The goal of raising the IEPS rate, also known as a healthy tax, is to reduce tobacco consumption and improve health levels in the country.
According to the CIEP (Centro de Investigación Económica y Presupuestaria) simulator, with the approved changes for 2026, cigar sales will decrease by 7.3%, dropping from 2,384.6 million packs to 2,209.4 million.
The simulator also indicates that the price per pack will increase from 73.1 to 85.8 pesos, a 17.4% rise. Of this amount, 73.1% corresponds to taxes, including IEPS and the Value Added Tax (VAT).
Key Questions and Answers
- What is causing the price increase? The increase in cigar prices is due to an approved rise in the IEPS rate from 160% to 200%, as well as an update in the additional quota charged per cigarette.
- Which brands are affected by this price change? Major cigar brands such as Marlboro, Pall Mall, Camel (Yellow and Original), and Winston are affected by this price increase.
- What is the purpose of this tax hike? The aim is to reduce tobacco consumption and improve overall health in the country.
- How much will cigar prices increase? Prices are expected to rise by over 20%, with some brands seeing increases of up to 22%.
