Economic Package for 2026: Changes to the Special Tax Law on Production and Services

On September 8, 2025, the Federal Executive Branch submitted to the Chamber of Deputies the Initiative with Draft Decree amending and adding various provisions of the Special Tax on Production and Services Law.

Below we present a summary of the most interesting proposals.

• Increase the tax rate from 160% to 200% on cigars, cigarillos, and other manufactured tobacco. For cigars manufactured entirely by hand, the rate will be increased from 30.4% to 32%, as well as a gradual increase in the specific tax on sold cigars.

• Establish a 200% tax rate for the sale or import of other products containing nicotine, with a specific quota based on the milligram content of natural or artificial nicotine.

• Maintain the exemption from the sale of cigarettes, cigars, and other tobacco products by persons other than manufacturers, producers, or importers.

• Tax flavored beverages with added natural or artificial sweeteners, within the definition of flavored beverages.

• Adjust the rate from 30% to 50% applicable to gambling and raffles, which will also apply to those conducted online or electronically, directly by the digital service provider or national and international digital platforms.

• Tax at an 8% rate the sale to the general public of violent, extreme, or adult content not suitable for minors under 18 years of age in physical format, as well as services provided by nationals or foreigners that allow access to or download of such video games within the country.

• For video game service providers without a business in Mexico, similar obligations are established for digital platforms of foreign residents in the Value Added Tax Law, as well as for intermediaries.