Previously, during the preparation of the 2025 budget, it was planned to raise the excise tax rate for soft drinks with sugar content to eight grams per 100 milliliters next year. By raising the excise tax on such beverages from 7.4 euros per 100 liters to 11 euros per 100 liters, it was previously planned to collect an additional 3.3 million euros.
The Ministry of Finance (FM) explained to the LETA agency that the decision not to increase the excise duty on less sweetened beverages was reached in discussions with the Ministry of Health and the Ministry of Agriculture, taking into account the impact on health and the interests of local food producers. On the other hand, the previously planned 3.3 million euros in the budget are expected to be obtained by raising the excise duty on drinks with a higher sugar content one year earlier than planned, as well as by increasing the excise duty on alcohol by-products, such as sweetened wines, port wines and vermouths.
In order to ensure a fiscally neutral effect, the government on Tuesday plans to maintain the current excise tax rate for soft drinks with less sugar content and to provide that the excise tax rate for soft drinks with a sugar content of eight grams (inclusive) per 100 milliliters and energy drinks at 21 euros per 100 liters will enter into force one year earlier, i.e. in 2025.
Therefore, it is planned that the excise tax for intermediate products of alcoholic beverages with an absolute alcohol content of up to 15 percent by volume instead of the current 148 euros per 100 liters will be raised to 159 euros from March 1 of the next year, from March 2026 – to 192 euros, but from 2027 March – up to 202 euros.
On the other hand, for intermediate products of alcoholic beverages with an absolute alcohol content of 15% to 22% by volume, the excise duty from the current 244 euros per 100 liters is planned to be raised to 264 euros from March next year, to 325 euros from March 2026, and to 343 euros from March 2027. .
Title: Sweetened Decisions: An Interview with Health Policy Expert Dr. Elena Markova on Recent Changes to Beverage Taxation
Setting: A sleek virtual meeting space with soft lighting. The Time.news editor, Alex, sits across from Dr. Elena Markova, a prominent health policy expert.
Alex: Welcome, Dr. Markova. It’s a pleasure to have you with us today.
Dr. Markova: Thank you, Alex. I’m excited to be here and discuss this important topic.
Alex: Let’s dive right in. The recent decision to not raise the excise tax on less sweetened beverages has generated quite a buzz. What were the main factors that led to this decision?
Dr. Markova: The decision was primarily influenced by discussions among various ministries, including Finance, Health, and Agriculture. They weighed the health implications of sugary drinks against the economic interests of local producers. This collaborative approach highlights how health policy cannot be viewed in isolation from economic realities.
Alex: Absolutely. It seems like a balancing act. Originally, the plan was to raise the excise tax on sugary drinks to generate an additional 3.3 million euros for the budget. What implications does this potentially have for health and local businesses?
Dr. Markova: Raising the excise tax on sugar-laden beverages can certainly serve as a deterrent, encouraging consumers to shift towards healthier options. The prior plan focused on crunchy sugar thresholds, aiming to boost public health. However, the new approach, which entails earlier tax hikes on sweeter beverages, could have a parallel effect. It allows time for local producers of less sugary drinks to adjust without being too harshly impacted upfront.
Alex: That’s a crucial point. It sounds like the government is trying to incentivize healthier choices while still supporting local businesses. How do you think this will influence consumer behavior?
Dr. Markova: We often see that higher prices on sugary beverages lead to decreased consumption. If consumers perceive healthier options as more financially attractive, they might gravitate toward those products. Educational campaigns accompanying these tax changes will also play a significant role in shaping perceptions around health and nutrition.
Alex: Speaking of education, how important do you think public awareness is in combating the health issues linked to sugar consumption?
Dr. Markova: Public awareness is fundamental. Many people are still unaware of the health risks associated with excessive sugar intake, such as obesity and diabetes. Thus, an integrated strategy that combines taxation with educational initiatives—informing consumers about the consequences of their choices—could foster significant lifestyle changes.
Alex: That’s a holistic approach. Looking ahead, do you believe there will be additional measures taken to regulate sugar in beverages?
Dr. Markova: I anticipate that there will be ongoing evaluations of sugar taxation effects. If local health data indicates progress in reducing sugary drink consumption and associated health issues, it could stimulate further regulatory measures. Could we see more categories of beverages taxed based on their sugar content? Absolutely. Policymakers will likely closely monitor consumer and industry reactions to the current changes.
Alex: Very insightful. what advice would you offer consumers as these changes unfold?
Dr. Markova: My advice would be to actively seek out information about the products they consume and consider the long-term health benefits of reducing sugar intake. It’s also essential to support local brands that prioritize healthier options. Together, through informed choices, we can drive market change.
Alex: Thank you, Dr. Markova. Your insights shed light on a complex issue and highlight the multifaceted approach needed to tackle health and economic challenges.
Dr. Markova: Thank you, Alex. It’s been a pleasure discussing these critical topics with you.
Alex: Likewise! Until next time, stay healthy and informed.
The camera fades out as the discussion wraps up, leaving viewers with key takeaways about health, policy, and proactive consumer behavior.