Mexico Mulls 30% Tobacco Tax Hike from 2026; Industry Warns of Illicit Market Growth and Revenue Losses
September 22, 2025 by 2firsts.com
Mexico Mulls 30% Tobacco Tax Hike from 2026; Industry Warns of Illicit Market Growth and Revenue Losses
Mexico's National Tobacco Industry Council (Conainta) is concerned about a proposed more than 30% increase in Special Tax on cigarettes and nicotine products, with up to 200% tax on alternative products starting in 2026. The Mexican Confederation of Industrial Chambers estimates a potential 50% boost in illicit consumption, leading to annual fiscal losses of MXN 13–15 billion. Conainta argues that previous tax hikes did not reduce consumption or boost revenue, citing a 7% drop in IEPS receipts for manufactured tobacco in 2024. Illicit trade poses a significant risk, with reports showing a 240% surge in illicit cigarettes from 2017–2023. The industry calls for a balanced fiscal reform to promote public health and combat illicit trade while maintaining sustainable revenues.
15.40% of the adult population are current smokers. There are approximately 15.2 million current smokers in Mexico 23.90% of men are current smokers but only 7.60% of women.
SOURCE: GSTHR
