Industry voices concern over tax hike in Mexico

  • UM News
  • Posted 4 months ago
00:00 / 00:00
Industry voices concern over tax hike in Mexico

Representatives from the casino sector in Mexico have voiced their concerns about the proposed health taxes by the government of President Claudia Sheinbaum in the Economic Package for 2026. Also present were representatives from the tobacco, beverages and other business sectors including the video gaming sector.

Business representatives made their case against the tax hikes in a working session of the Finance and Public Credit Commission of the Chamber of Deputies, ahead of the approval of the Federal Revenue Law (LIF), the Federal Rights Law (LFD), the Federal Tax Code (CFF), and the modifications to the Special Tax on Production and Services (IEPS).

During the meeting convened by the Chamber of Deputies’ Finance Committee, they warned that the economic package would encourage informality and black markets—currently controlled by organized crime— affect popular consumption , cause the closure of small businesses, and make it difficult to combat health problems such as obesity and diabetes.

Alfonso Pérez Lizaur, president of the Association of Gaming and Lottery Permit Holders and Providers (AC), said that raising the IEPS (Tax on Personal Income Tax) for gaming and lotteries from 30 to 50 per cent increases the risk of a sector that generates formal income of 42.2 billion pesos, a large portion of which comes from digital channels operated under license, moving into the informal sector.

“This sector of taxpayers believes that the federal executive’s initiative poses serious risks to the development of the activity, not only undermining its development but also exacerbating migration to the informal sector. Among the main risks identified are the following: pressure on operating margins, incentives to seek informal alternatives, and unfair competition,” he said.

Meanwhile Orlando Pérez from the Mexican Association of Interactive Entertainment Video Games (MX) expressed that the creation of an 8% tax on video games classified as violent would negatively impact the development of the national video game industry.

Mexico’s Ministry of Finance has included a series of non-fiscal tax measures in the 2026 Economic Package aimed at discouraging the consumption of products deemed harmful to the population’s physical and mental health. These measures propose new taxes on violent video games and online gambling sites, as well as an increase in taxes on flavoured beverages and tobacco.

According to the document submitted to the Chamber of Deputies in September, the government is proposing to implement an 8% special tax on digital services for violent video games and to raise the tax on online gambling from 30% to 50%. 

The administration of President Claudia Sheinbaum argues that consumption from these industries incurs significant social and economic costs, ranging from obesity and diabetes related to sugary drinks to isolation and anxiety associated with intensive video game use, along with family financial losses resulting from the rise of online gambling.

The post Industry voices concern over tax hike in Mexico appeared first on G3 Newswire.

 

​Representatives from the casino sector in Mexico have voiced their concerns about the proposed health taxes by the government of President Claudia Sheinbaum in the Economic Package for 2026. Also present were representatives from the tobacco, beverages and other business sectors including the video gaming sector. Business representatives made their case against the tax hikes…
The post Industry voices concern over tax hike in Mexico appeared first on G3 Newswire. 

Get in touch

Let's have a chat