Mexico Moves Forward with Tax Proposal on Mature Video Games
2025-10-19 07:14:19Mexico has advanced legislation that would impose additional taxes on violent video games following approval by the Chamber of Deputies. This proposed levy forms part of a comprehensive fiscal package that now proceeds to the Senate for consideration, potentially leading to increased prices and greater regulatory oversight in one of Latin America's most significant gaming markets.
According to a 2025 Human Rights Watch report, Mexico continues to grapple with alarmingly high rates of homicide and violent criminal activity. The situation reached its peak in 2022 when six Mexican cities reported homicide rates exceeding 100 per 100,000 residents. While national homicide statistics have shown a modest decline in recent years, currently standing at approximately 25 per 100,000, a simultaneous increase in reported disappearances suggests the actual homicide rate may not have substantially changed. Much of the country's violence has been attributed to drug cartel activities, which have persistently challenged government enforcement efforts over many years.
While the connection between video game content and real-world violence remains scientifically debated, the industry has become a legislative focus. On October 17, Mexico's Chamber of Deputies voted to implement an 8% tax on violent video games. This measure was incorporated into Mexico's 2026 Economic Package proposal under the category of "health taxes," which also includes increased levies on sugary beverages, tobacco products, and gambling activities.
The proposed legislation more accurately constitutes a tax on mature-rated video games, extending beyond exclusively violent titles to include any games classified with C (18+) and D (adults-only) ratings under Mexico's System of Equivalences of Video Game Content Classification. Initially introduced on September 14, the Treasury Department's budget presentation asserted that "recent research has identified connections between violent video game usage and increased aggression levels among teenagers, along with adverse social and psychological consequences including social isolation and anxiety." The presentation did not reference specific studies to support these claims.
The proposal now moves to the Senate, where deliberations are anticipated in the upcoming weeks. The Congress of the Union faces a November 15 deadline to determine whether to enact this legislation. The current draft lacks clarity regarding whether the tax would apply to both physical and digital game sales, and its position on subscriptions, downloadable content, and various microtransactions remains undefined. If the general proposal receives approval, the Senate's version of the law is expected to address these outstanding questions.
The proposed tax on violent video games would be applied in addition to Mexico's existing Value Added Tax, which has remained at 16% since 2010. The Treasury Department explained that the measure's objective is to generate resources for assisting individuals experiencing negative social and psychological effects that the department attributes to video game consumption.