Sugar tax adds around €6 million to the budget, while sales of beverages fall

The new excise duty on sweetened beverages, which came into force this year, has put a bit of a dent in traders' wallets, as sales have fallen. However, the tax added €6 million to the state budget in the first two months of the year.

The excise duty would have been collected more if drink producers had not changed their recipes and used other sweeteners instead of sugar to reduce the taxable sugar content in drinks. 

However, if excise duty on sweetened drinks continues at a similar rate, the budget could end the year with twice as much revenue as expected when the tax was introduced.

The government data agency BNS said that in February this year, compared to December 2025, nectar from various fruits or berries had increased by 12.6%, while energy drinks had risen by 15.2%, cocoa – 10.5%, carbonated beverages in various flavours such as „Fanta“, „Rasa Frut“ – 24.7% and non-carbonated drinks based on natural fruit extracts – 27.5%.

Carbonated beverages, such as „Coca cola“, „Pepsi cola“, increase in price by 26.4%, and gira – by 25.1%. 

Syrups in particular have become more expensive, according to traders – in some cases even double. The State Data Agency estimates that berry or fruit-flavoured syrup has risen by more than 2 times.  

Collection of excise duties in January-February amounted to almost €6 million

Excise duties on imported sweetened beverages are administered by the Lithuanian Customs, while those on beverages produced in Lithuania or purchased from the European Union (EU) are administered by the State Tax Inspectorate (STI). 

Rosita Ališauskienė, head of the excise administration department at the VMI, told BNS that 168 taxpayers are currently registered to pay excise duties on sweetened non-alcoholic beverages.

„The number of registered persons includes those who receive sweetened beverages from an EU country or produce them in Lithuania for business purposes“, – said Rosita Ališauskienė.  

In January, 94 companies declared that they supplied sweetened beverages to the market and paid €3 million in excise duty, and in February, 120 companies paid €2.5 million. 

Two residents have also registered for excise duty on sweetened beverages so far, and have paid €250.26. 

Prior to the introduction of the sugar tax, it was expected to raise €25 million per year. 

Customs reported that nine companies paid excise duty in January and 24 in February. For beverages with added sugar, €93.9 thousand were charged in January and €105.7 thousand in February. 

 Reduced sugar, added sweeteners 

Petras Čepkauskas, a representative of pricer.lt, a portal that monitors prices, pointed out that after the sugar tax came into force, beverage producers rushed to reduce the amount of sugar in their products, but increase the amount of sweeteners.

„Many have started to make half with sugar, half with sweetener“, – he told BNS.

„Many have adjusted their recipes to make them lower excise duty, added sweeteners, which I don't know if that's good. What is better – 10 grams of sugar or 4 grams of sugar with added sweeteners? And yet they raised the prices, they went for the profits," he added.

Darius Ryliškis of „Norfa“ also confirmed this: „Sales of beverages have fallen slightly, and not in every category. It should be noted that some producers have replaced sugar with sweeteners.

According to traders, the excise duty on instant coffee drinks „3in1“ – with sugar and „2in1“ – without sugar has increased by around a fifth.

At the time, the State Data Agency says that the price of instant coffee drink in February this year was 41.4 per cent higher than in December 2025, when there was no sugar tax.

According to Luka Lesauskaite-Remeikė, a spokeswoman for Rimi, although 2in1 products do not contain sugar, it does not necessarily lead to a lower price.

„Sugar is a relatively small part of the cost price, with coffee, powdered milk, production and logistics having a bigger impact. In addition, producers often apply the same pricing to similar products, so the final price to the consumer may not differ, she told BNS. 

A spokesperson for „Norfa“ stressed that „2in1“ instant coffee does not contain any sugar, but does contain glucose syrup:  If the product contains sweeteners, the product is subject to a sugar levy “&p

According to Marius Tilmantas, Director of the Purchasing Department at Maxima, the sugar tax has hit coffee mixes and coffee capsules the hardest, with the latter rising by almost 23% and coffee mixes by even more. 

Traders: shoppers react flexibly to changes

According to supermarkets, since the sugar tax came into force in January, the prices of all sweetened soft drinks have increased. Syrups have become the most expensive and purchases of syrups have fallen. Meanwhile, purchases of lemonade are similar to a year ago, with people opting for natural juices instead of nectars.  

„The biggest price increases are recorded in the juice drinks, nectars, lemonades, energy drinks and other sweetened products categories. The prices of drinks with less than 8 grams of sugar per 100 ml (in „Rimi“ stores – BNS) increased on average by about 8–9%, while those with more than 8 grams – by about 22–23%, – said L. Lesauskaitė-Remeikė.

Syrups are the most notable, she said, as is syrups, which have more than doubled in price in some cases, according to a representative of „Norfa“.

„This is strongly influenced by the excise duty rate applied to concentrates, which is around €105 per hectolitre of the product,– explained the „Rimi“ representative. 

„The price of the syrup has risen by up to 70%, while sales have almost halved“, – added D. Ryliškis.

According to L. Lesauskaitė-Remeikė, there has been no change in the sales of lemonades.

Meanwhile, a moderate decline in sales was observed in the juice and nectar drinks segment. The decline of around 8% reflects the fact that some consumers are more sensitive to price increases in these beverages, she said.

According to a spokeswoman for„Rimi“, the overall price of sweetened beverages is  higher compared to the same period last year:  The change is most noticeable in products with more sugar“.

According to D. Ryliškis, sweetened soft drinks have increased in price by between 3% and 40%.

„Lidl Lietuva“ public relations manager Lina Skersytė also said that the sugar tax has had a major impact on the prices of lemonades, syrups and nectars. However, she said, shoppers are reacting flexibly to the changes, for example, opting for natural juices instead of nectars.

M. Tilmantas estimates that the sugar tax affected around 500 different products.

Direct-pressed juices and juices from concentrates showed almost no significant changes during this period.

Compared to February this year and last year, sales of fruit drinks in „Maxima“ stores grew by around 11%, while purchases of juices, nectars and juice drinks fell by 6%.