Mexico to Tax Soda, Tobacco, and Violent Video Games

Mexico City, Mexico — The delivery of the 2026 Economic Package has brought with it an initial surprise: the Government of Mexico is proposing so-called "health taxes," which would levy new duties on violent video games, tobacco, and soft drinks.

After a delay of more than four hours and nearly at the constitutional deadline, Édgar Abraham Amador Zamora, head of the Ministry of Finance and Public Credit (SHCP), delivered the 2026 Economic Package to the Congress of the Union on the night of September 8, 2025. The protocol act took place in the Chamber of Deputies, where Amador Zamora delivered the initiatives for the Revenue Law, Miscellaneous Tax Resolution, and the Federal Expenditure Budget (PEF) to the president of the Board of Directors, Kenia López Rabadán. Later, the document was also delivered to the Senate.

The proposal sent by President Claudia Sheinbaum estimates total revenues of 8.7 trillion pesos, of which 5.8 trillion pesos would be obtained from the government's tax revenues, 5.7% more than last year, and which in total would reach 15.1% of the country's Gross Domestic Product. Within these tax revenues, the so-called "health taxes" drew attention.

What Are the "Health Taxes"?

The SHCP explains on page 37 of the document delivered to the Legislative Branch that the government seeks to strengthen the so-called health taxes with the objective of reducing diseases related to obesity, diabetes, and smoking, which today represent an annual healthcare cost of 116 billion pesos.

According to the Finance Ministry, in Mexico, 76.2% of adults are overweight or obese, and tobacco causes the death of more than 63,000 people per year. To this are added the social risks of online gambling and the psychological effects of the excessive use of violent video games.

In this sense, the government proposes to tax these products not only for revenue collection but as a public health policy:

• Soft drinks: The IEPS fee will rise to 3.0818 pesos per liter, including beverages with non-caloric sweeteners.
• Tobacco: The rate will increase from 160% to 200%, with gradual increases until 2030. New nicotine pouches are also included.
• Hand-rolled cigars will see their value-added tax increase from 30% to 32%.
• An 8% special tax will be applied to "violent video games" and related digital services.
• Gambling: The tax will increase from 30% to 50% on the amount wagered or collected.

With the so-called "health tax," the government expects to collect an additional 183 million pesos in 2026 from the tax on violent video games alone. This will be supplemented by higher revenues from the sale of soft drinks, tobacco, and online betting.

The Finance Ministry maintains that, beyond revenue collection, these measures seek to change consumption habits and decrease the social and health risks associated with these activities.