Mexico’s Ministry of Finance and Public Credit (SHCP) included in the 2026 Economic Package a set of so-called “health taxes” that would affect products such as soft drinks, tobacco, video games, and betting services.
For sugary drinks, the proposal seeks to increase the Special Tax on Production and Services (IEPS) to 3.0818 pesos per liter, including beverages with non-caloric sweeteners. This represents an 87.3% increase compared to the current rate of 1.6451 pesos per liter approved for 2025.
In the case of tobacco, the plan suggests raising the ad valorem rate from 160% to 200% on manufactured products, along with a gradual increase in the specific quota until 2030. It also proposes including nicotine-containing products and raising the ad valorem rate on hand-rolled tobacco to 32%.
For digital services, an 8% ad valorem tax would apply to violent video games, while taxes on betting activities would rise from 30% to 50% of the total wagered or effectively received.
The 2026 Economic Package notes that the high consumption of sugary beverages is linked to overweight or obesity in 76.2% of adults in Mexico, conditions associated with diabetes, heart disease, and metabolic disorders. Tobacco use is associated with approximately 63,000 deaths per year in the country, due to diseases such as chronic obstructive pulmonary disease, lung cancer, and cardiovascular conditions.
The proposal also refers to studies on violent video games, which suggest links to increased aggression, isolation, and anxiety among adolescents. In the case of online betting, it highlights its growing availability and potential social and economic risks.
According to the SHCP, these measures aim to reduce the consumption of harmful products while strengthening the tax system, broadening the tax base, and increasing federal and local revenues for health, education, security, and infrastructure.
Source: El Financiero
