Mexico’s lower house of Congress has approved a series of tax increases targeting sugary beverages, cigarettes, oral serums, violent video games, and online gambling. The measures, part of the 2026 Economic Package, also include tougher oversight of companies involved in issuing false invoices. The proposal now moves to a plenary session for final approval.
The Special Tax on Production and Services (IEPS) for soft drinks and other sugary beverages could rise by as much as 15 percent, potentially increasing retail prices. Lawmakers said the move aims to discourage consumption of unhealthy products and boost federal revenue.
The package also calls for higher cigarette taxes, raising the rate from 160 to 200 percent. Taxes on cigars and hand-rolled tobacco products would increase from 30.4 to 32 percent. An 8 percent levy would apply to video games with violent or adult content not suitable for minors, whether sold physically or accessed through digital platforms.
Under the reforms, digital service providers must grant Mexico’s Tax Administration Service (SAT) “permanent, real-time online access” to information stored in their systems. The rule would cover services such as streaming, online marketplaces, dating platforms, and distance-learning sites.
In addition, amendments to the Federal Tax Code aim to block registration in the Federal Taxpayer Registry for companies suspected of participating in false invoicing schemes. These networks issue fake invoices to deceive authorities, inflate expenses, or claim undue tax deductions and refunds.
Authorities say such practices enable tax evasion, money laundering, and the financing of illegal activities. Producing or using false invoices is considered a serious crime in Mexico and can lead to both civil and criminal penalties.
