Mexico’s 2026 adjustments to the Special Tax on Production and Services (IEPS) led to higher revenue from tobacco products, flavored beverages and gambling activities in January.
According to figures from the Secretaría de Hacienda y Crédito Público (Finance Ministry), IEPS collections —excluding fuel— totaled 46.17 billion pesos in the first month of the year, marking a 19.7% real increase compared with January 2025.
Tobacco generated the sharpest rise, with revenue climbing 51% year over year to 26.6 billion pesos. The ad valorem tax on cigarettes increased from 160% to 200%, while the per-unit fee rose from 0.64 to 0.85 pesos. Taxes on cigars and other handmade tobacco products also edged higher.
Revenue from flavored and sweetened beverages reached 4.99 billion pesos, up 10% in real terms. The per-liter tax on sugary drinks nearly doubled, and a new 1.50-peso-per-liter levy was introduced on drinks containing artificial sweeteners.
Meanwhile, excise revenue from betting and sweepstakes totaled 416 million pesos, up 13% annually. The tax rate for these activities was raised from 30% to 50%, including for digital platforms operated from abroad without a physical presence in Mexico.
Source: Expansión
