Increase in the IEPS for Gasoline, Tobacco, and Soft Drinks for 2025
Once again, the Ministry of Finance and Public Credit (SHCP) has revealed the updated rates for the Special Tax on Production and Services (IEPS) that apply to gasoline, diesel, tobacco, soft drinks, and flavored waters. This adjustment is based on the National Consumer Price Index from November of last year through November 2024, along with what is stipulated by the Federal Tax Code. For 2025, the increase in the IEPS will be 4.3%.
Starting January 1, 2025, sellers will have to reflect the newly adjusted rates in the final price, whether at gas stations or stores. For every liter of Magna gasoline, Premium gasoline, and diesel in Mexico, there are three IEPS rates applied: the federal, the state, and the CO2 emission fee; all will increase by 4.3%. For Magna gasoline, the IEPS rate will rise from 6.88 pesos in 2024 to 7.19 pesos in 2025. Premium gasoline will go up from 6.03 pesos to 6.31 pesos, and diesel will increase from 7.43 pesos to 7.76 pesos per liter. It’s worth mentioning that the adjustments to the IEPS for gasoline have been made since 2016, in accordance with inflation, while the VAT, which is also applied to these fuels, remains at 16% of the base price of the product. In 2025, the state rate, which benefits the federal entities, will be 56.97 cents per liter for regular gasoline (up from 54.50 cents), 69.52 cents for Premium (up from 66.50 cents), and 47.28 cents for diesel (up from 45.23 cents). The IEPS for consumers of soft drinks and tobacco will also be updated. For tobacco, each cigarette will cost 0.6445 pesos in 2025, up from 0.6166 pesos in 2024. The fee for a pack of 20 cigarettes will increase from 12.33 pesos this year to 12.89 pesos in 2025, showing a 4.3% increase. As for flavored beverages like juices and soft drinks, the IEPS will also rise per liter from 1.5737 pesos to 1.6451 pesos in 2025.
This increase in the IEPS reflects the government's need for revenue, but it also impacts consumers' wallets. Tax hikes, while justified by inflationary factors, can limit the purchasing power of families, so it is essential for the government to implement measures that counteract this effect, such as tax incentives or economic support programs.
