Mexico backs down on video game tax: the 8% levy will not be applied

The Government admits that it does not know how to classify or charge the tax on "violent" video games.

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The debate over the tax on video games in Mexico has taken an unexpected turn. Claudia Sheinbaum has confirmed that the 8% tax will not be applied to video games considered “violent”, despite the measure being included in the Revenue Law. The reason is not political, but practical: the government itself acknowledges that it does not know how to collect it.

According to the president, the problem goes far beyond a minor technical adjustment. The Executive has found itself in an impossible scenario to manage within the current digital ecosystem, which has led to the measure being put on hold before its implementation.

The tax on video games remains on paper due to lack of clear criteria

Sheinbaum was clear in pointing out the main obstacles: there is no objective way to determine which video game is violent and which is not, who should make that decision, with what criteria, and how to avoid arbitrariness in the process. This is added to a key factor: many current video games function as online services, with constantly changing content, frequent updates, and dynamic mechanics that make a stable tax classification unviable.

• In the face of this scenario, the Mexican government has opted not to apply the tax, although it is still formally included in the Revenue Law. Instead, it is betting on campaigns aimed at young people and adolescents focused on issues such as addiction and peace-building, moving away (at least for now) from a direct revenue path.

The proposal had generated notable rejection within the gaming community, not only due to the economic impact but also due to the underlying approach. Many players and industry professionals considered it problematic to directly associate video games with violence or addiction, labeling the measure as simplistic and disconnected from the reality of the medium. The episode highlights the difficulties of regulating the digital environment without in-depth knowledge of the sector and its particularities.