Government Approves Tax on Sweetened Soft Drinks

Bratislava, May 22 (TASR) - Soft drinks with added sugar or sweeteners, whether regular bottled drinks, syrups or energy drinks, will be subject to a new excise duty as of the next year, according to a draft bill that was approved by the government on Wednesday. The new tax has been designed to work as an indirect consumption tax and it will be paid to the state budget by business entities that make the first delivery of the aforementioned beverages to the domestic market. The tax will be collected via the price of a beverage. Sweetened milk drinks, yoghurt drinks and plant-based drinks will be exempted from the tax. Further exemptions will include concentrated packaged substances of a medicinal nature that are sold, for instance, in pharmacies, as well as dietary supplements, such as over-the-counter effervescent vitamin tablets and protein drinks with added sugar and sweeteners. The Finance Ministry proposed a tax rate of €0.15 per litre for packaged ready-to-drink beverages containing added sugar or sweeteners, while the rate should stand at €0.30 per litre for high-caffeine energy drinks. In the case of packaged concentrated substances which require further preparation by adding water, milk, ice or carbon dioxide, the rate should be €1.05 per litre or €4.30 per kilogram, depending on the unit of measurement in which the drink is supplied. The Finance Ministry has estimated that the new tax should produce more than €79 million for the budget in 2025, €108 million in 2026 and €110 million in 2027. The tax, if approved, should enter into force on January 1, 2025. zel/mcs