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Portugal's Sugary-Drinks Tax To Bubble Up Prices

By Branislav Pekic
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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.

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