Sugar levy proposed to be postponed for a year

The so-called sugar tax, which will come into force next year, is proposed to be postponed until January 2027.

Rimas Jonas Jankūnas, a member of the Lithuanian Peasants, Greens and Christian Family Union group in the Seimas, has registered amendments to the Excise Duty Law to this effect.

He said that if sugar were replaced by sweeteners that are more dangerous to health for economic reasons due to excise duties, it could cause serious harm.

„An analysis of 25 studies in 2022, involving almost 4 million subjects, that met the established selection criteria, showed a link between the consumption of artificial sweeteners and the risk of death. This meta-analysis showed a 13% higher risk of death in those who consumed artificial sweeteners. In addition, the consumption of artificial sweeteners may have increased the risk of cancer in Europe. (...) It has also been found that some widely consumed sweeteners may damage the function of the endothelium – the inner lining of blood vessels – the document's explanatory note says.

After the law has been postponed, the Ministry of Health will be able to propose a mechanism for excise taxation of sweetened beverages that is less harmful to the health of the population, according to R. Jankūnas.

ELTA recalls that in June the Seimas approved a proposal to introduce an excise duty on sugary drinks from 2026.

The excise duty will apply, depending on the sugar content, to non-alcoholic sweetened beverages containing more than 2.5 grams of added sugars (per 100 ml of beverage). The tax will apply to concentrates used in the preparation of such drinks.

Exemption from excise duty will apply to sweetened beverages intended for the manufacture of foodstuffs, bulk beverages produced in catering establishments and sweetened beverages intended for the manufacture of pharmaceutical products, medical devices, food supplements, infant formulae.

The sugar tax is estimated to add €25 million per year to the budget.