President Claudia Sheinbaum announced that her government has decided not to levy a tax on video games, arguing that there is no clear criterion to distinguish between those that contain violence and those that do not.
“How are you going to impose a tax? Who is going to determine that circumstance?” the president said. “So we made the decision not to charge the tax and instead to carry out campaigns for young people and adolescents.”
Sheinbaum explained that, in its place, campaigns will be promoted focusing on informing about the risks associated with this type of games, particularly online games, which can generate addictions and promote violent behavior.
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The head of the Executive Branch specified that, although eliminating the tax on violent video games was initially considered within the 2026 Economic Package as a measure to reduce violence in the country, her administration chose to replace it with awareness and prevention strategies aimed at eradicating violence.
Context: Video Game Tax
In September 2025, the Federal Government presented the Economic Package for 2026. The document included an 8% tax under the concept of IEPS applied to video games with violent content or classified for adults. The proposal came from the Ministry of Finance and Public Credit as part of fiscal adjustments for the year.
The initiative estimated revenue of 183 million pesos. The funds were to be allocated to infrastructure projects and social programs included in the budget. The measure was integrated into the overall income framework proposed for the following fiscal year.
From the Executive Branch, the administration explained that the levy sought to influence parental supervision of the content consumed by minors. The proposal was linked to public security objectives and to the regulation of digital entertainment products available in the national market.
Reactions from the Development and Consumer Sector
Developers and specialists in the sector expressed disagreement with the proposal. They pointed out that an additional tax would affect an industry seeking to consolidate itself in Mexico. Danielle Guerrero, a video game development engineer, stated that the tax burden increases independent production costs.
From the users’ perspective, Alfonso López said that price increases would not reduce consumption. He noted that the measure could encourage informal channels and piracy practices, with direct effects on the revenues of legal distributors.
Sector organizations also questioned the criterion of equating video games with other products taxed under IEPS. Game Devs Mexico (GDMEX) argued that such a comparison overlooks the cultural and economic component of gaming within the creative industries.
Ali López, a communication specialist, raised the difficulty of defining the concept of “violence” in video games. He noted that different titles present confrontation dynamics with diverse approaches, which complicates a homogeneous classification for tax purposes.
Market Size and Government Decision
Mexico has a community of 76 million active gamers. The country leads the market in Latin America and ranks among the top ten worldwide. The industry reports annual revenues close to $2.3 billion.
Specialists indicated that the tax would have direct effects on consumers. They also pointed out that the impact would fall on households with lower spending capacity, as video games are one of the main digital entertainment options.
After reviewing the sector’s observations and the complexity of establishing classification criteria, the government modified the proposal. The administration replaced the tax with preventive campaigns focused on information and parental guidance regarding video game content.
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