Tax on soft drinks extended to sugar-free

The additional tax imposed by the federal government last year on soft drinks containing sugar will be extended to “light” and “zero” varieties that contain sweeteners. The measure was part of the budget agreement reached by federal ministers earlier this week.

The new tax increases the price of a can of soda by one cent, and by three cents on a two-litre bottle. The extension to drinks containing artificial sweeteners is expected to raise €35 million a year, which brings the total raised by increased taxes on all soft drinks to €75 million.

Ministers admitted that the increase is purely fiscal, and not part of an overall nutrition plan. Two years ago, when the original measure was being discussed, experts warned it would have little effect on public health. The tax, they said, would have to be considerably higher to deter consumers from buying the products.

Only if the income were used to make healthy alternatives cheaper and to finance a prevention campaign could positive effects be anticipated, the experts said at the time.

Photo: Ingimage