Cigarettes, soft drinks, and video games: this is how taxes will increase in 2026

The 2026 Economic Package , submitted by the Ministry of Finance and Public Credit (SHCP) to the Chamber of Deputies, marks an important shift in the country's fiscal policy: consumers of tobacco, sugary drinks, and video games will be the most affected by the tax increase.

Treasury Secretary Edgar Amador Zamora explained that the measures seek to strengthen tax collection , but also discourage harmful consumption and fund social and health programs.

The proposal raises the IEPS (Tax on Cigarettes) from 160% to 200% ad valorem , in addition to increasing the fixed quota per unit.

• In 2026, each cigarette will pay $0.8516 of IEPS , compared to the current $0.6445.
• A pack of 20 cigarettes will cost an extra $17.03 , plus 200% off the base price.
• Alternative products, such as nicotine pouches and electronic devices , also fall under the tax scheme.

The Ministry of Finance (SHCP) justifies the increase as a public health measure , since tobacco use remains one of the leading causes of chronic diseases in Mexico.

The new tax package doubles the IEPS tax on soft drinks and sugary beverages: from $1.6451 to $3.0818 per liter .

This will impact:

• Regular and light soft drinks
• Syrups, powders and preparations
• Craft drinks with added sugars

Mexico is one of the countries with the highest consumption of soft drinks in the world, with 166 liters per capita per year . The measure seeks to reduce the high levels of diabetes and obesity , which affect 76% of the adult population.

For the first time, video games will be taxed:

• 8% IEPS for video games with violent or adult content .
• It will be applied in both physical and digital format.
• Includes downloads, memberships and in-game purchases .

Additionally, gambling and lottery games will see a tax increase from 30% to 50% , affecting both brick-and-mortar casinos and online platforms.

The SHCP argues that the measure responds to the growing social impact of video game and gambling addiction , in addition to the need to regulate a sector that moves billions of pesos.

The 2026 Economic Package forecasts total revenues of 8.7 trillion pesos , with tax collection of 5.8 trillion .

• The Chamber of Deputies has until October 20, 2025, to approve the proposal.
• The Senate will review the Revenue Law before October 31 .
• The Budget of Expenditures must be approved no later than November 15 .

With these measures, the government seeks to balance public finances , reduce the deficit, and finance priority social programs of Claudia Sheinbaum 's administration.

The 2026 Economic Package is not just a fiscal plan: it represents a political and social commitment. While for the Treasury it is a tool for tax justice and public health , for millions of consumers it will make a tangible adjustment to their daily lives.

The big question will be whether Congress will approve these measures as presented, or whether pressure from the affected industries will succeed in modifying the scope of the bill.