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Portugal’s New 'Fat Tax' to Target Soft Drinks

Published on Oct 11 2016 10:15 AM in Drinks tagged: Portugal / Budget / Soft Drinks / Fat Tax

Portugal’s New 'Fat Tax' to Target Soft Drinks

The Portuguese Government is likely to introduce a new “fat tax” in its 2017 Budget, which will target soft drinks and will be calculated according to the sugar concentration.

According to local daily Jornal de Negocios, the measure is still subject to final validation, but should be introduced on two levels.

The first will tax by €8.22/hectolitre beverages with a concentration of up to 80 grams of sugar per litre. The second level will be €16.44/hectolitre and will focus on beverages in which sugar levels exceed 80 grams per litre. Milk-based drinks, nectars and juices will be exempt of this taxation.

Based on initial calculations, the new tax may increase by €0.16 the price of the products to which it applies.

The Federation of Agro-Food Portuguese Industries (FIPA) says that the new tax on sugary drinks, in introduced, would contradict all the work that companies have done together with the government and health authorities, to reduce levels of salt, sugar or fat in foods.

© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. To subscribe to ESM: The European Supermarket Magazine, click here.

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