The “sugar tax”, or tax on sugary drinks, should come into force on 1 July 2024, after four years of postponements. This tax, introduced in 2019 for 2020, has always been postponed. Now, the Meloni government has decided to implement it, although with a halved flow rate for the first two years: it goes from 10 to 5 cents per liter and from 25 to 13 cents per kilogram.
However, there is a discrepancy between the government amendment to the Superbonus decree, which provides for the implementation of the tax, and the technical report of the same, which speaks of a further postponement. If confirmed, the tax on single-use plastic will come into force in 2026, when the tax on sweet or sweetened drinks will double.
Impact of the Sugar Tax on Business
Companies in the sector, surprised by the news, fear an increase in the prices of products on the shelves. Giangiacomo Pierini, President of ASSOBIBE, the Confindustria association representing the producers of soft drinks in Italy, commented that the tax will increase the tax rate by 14% on each liter of product, with or without sugar.
The Meloni government is ready to bring into force a new tax, the Sugar tax, from 1 July 2024, unless there are further postponements. The amendment that would introduce it is contained in the Superbonus Law Decree being discussed in the Senate. The protest of companies and part of the majority who apparently were not warned about this is growing.
Possible effects of the Sugar Tax on sales of soft drinks
The Sugar Tax is a measure that aims to discourage the purchase and consumption of sweetened soft drinks, which if consumed in excess can cause serious damage to health. It was Giuseppe Conte’s second government that introduced it with the 2020 Budget Law but its entry into force has been postponed many times until today.
Sugar Tax Tax Details
With the current amendment the taxation changes. In detail: for finished products, it goes to 5.00 euros per hectoliter instead of 10.00 euros even if the figure will return to ten starting from 1 July 2026. for products that can be used after dilution, it goes to 0, 13 euros per kilogram, but even for these products it is a temporary reduction. from 1 July 2026.
However, protests are mounting on several fronts over the imminent entry into force of the Sugar Tax. Especially companies and associations in the sector, including Assobibe, are experiencing strong discontent. If confirmed, the entry into force of the Sugar Tax represents a cold shower especially following the government’s proclamations about not wanting to impact businesses with new taxes.
Through a note, the association hopes that “the political will of this Government is consistent with the positions it has always supported, to avoid being the first to implement a tax that is always defined as useless and harmful”. From the data analyzed with the entry into force of the sugar tax, sales of soft drinks could suffer a significant decline.
