From 2022, an increased excise duty rate is to be applied on sweetened non-alcoholic beverages, as set out in the amendments to the Law on Excise Duties adopted by the Saeima in the final reading on Thursday, 6 February. 

The amendments stipulate that the rate of duty per 100 litres of soft drink will be 7.40 euros if the sugar content is up to eight grams per 100 ml of drink. If the amount of sugar is above eight grams per 100 millilitres of beverage, the rate for such a drink will be 14 euros per 100 litres.  

For non-alcoholic beverages containing other sweeteners, the excise duty rate will remain the same as for other non-alcoholic beverages until now, namely, 7.40 euros per 100 litres of beverage. 

The changes to the Law are intended to encourage citizens to reduce their daily intake of high-sugar non-alcoholic drinks, as high-sugar, high-salt and saturated fat diets present a major health hazard and increase the risk of chronic non-communicable diseases, said the authors of the proposal. 

Amendments to the Law require the government to prepare and submit to the Saeima an informative report on the impact of changes in the tax rate on beverage manufacturers by 2024, as well as an assessment of the health effects of sweeteners replacing sugars in beverages. 

During the consideration of the amendments, representatives of the Ministry of Finance emphasised that any changes in tax rates should be seen in the context of the common tax policy. It was also noted that in some cases the rate increase for sweetened drinks would result in a higher tax on them than on certain alcoholic beverages such as beer. 

Saeima Press Service