Mexico’s Chamber of Deputies approved new taxes on gambling

Mexico’s Chamber of Deputies has approved a sweeping fiscal package that raises the Special Tax on Production and Services (IEPS) across several sectors, including betting, gaming, tobacco and sugary beverages. 

Backed by the ruling Morena party and its allies, the reform aims to boost federal revenue in 2026 by 10%, with projections of MXN761.5bn ($41bn) in additional funds.

The measure follows the last committee approval of higher betting and gaming taxes.

The latest version of the reform increases taxes on games with bets and online lotteries from 30% to 50%, and introduces an 8% IEPS charge on violent video games. 

The Finance Ministry said the new levies are designed to address public health concerns while expanding the fiscal base.

The IEPS on Soft drinks, including those with artificial sweeteners, will see an 87% tax increase, cigarettes will also climb from 160% to 200% and new taxes will target nicotine-based products.

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Opposition lawmakers criticized the reform, arguing that it disproportionately impacts lower-income households and small businesses. 

However, the Government maintains that the changes will fund key health initiatives and modernize Mexico’s fiscal policy.

Mark Sullivan

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