Portugal's Sugary-Drinks Tax To Bubble Up Prices

By Branislav Pekic
Share this article
Portugal's Sugary-Drinks Tax To Bubble Up Prices

A tax on sugary drinks in Portugal came into effect on 1 February, due to a new budget law that aims to raise €80 million this year.

Non-alcoholic beverages, including mineral, flavoured, and aerated waters, with added sugar or other sweeteners will be taxed, as well as beverages containing 0.5-1.2% of alcohol (such as wines made from fresh grapes, vermouth, cider and mead). All proceeds will go to the national health system.

A bottle of soft drink will be €0.15 more expensive if it has a sugar content of up to 80 grams per litre, and its price will increase by €0.30 if the sugar content is above that value.

Portugal's parliament approved the tax on 25 November last year.

The Portuguese Non-Alcoholic Refreshment Beverages Association (PROBEB) considers the sugar and soft-drink tax a 'discriminatory' measure, warning that it may threaten the sustainability of the industry, due to fiscal differences with Spain.


In a statement to the Lusa news agency, the association said that it is committed to reducing the caloric content of soft drinks between 2013 and 2020 by at least 25%, adding that the reduction had already reached 10.7% by the end of 2015.

Products will be subject to VAT from €8.22 per hectolitre for beverages with a sugar content of less than 80 grams per litre and €16.46 per hectolitre for beverages with a sugar content equal to or greater than that limit.

© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up for ESM: The European Supermarket Magazine.

Get the week's top grocery retail news

The most important stories from European grocery retail direct to your inbox every Thursday

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our terms & conditions and privacy policy. You can unsubscribe at any time.