Portugal: “Sugar tax” on soft drinks applied this week

Page created: Monday, 30 January 2017 14:28 GMT

Portuguese National Health Service  Soft Drinks  State Budget  Sugar Tax  VAT

Lisbon, Jan. 30 (Lusa) – Tax on soft and sugary drinks in Portugal is due to increase on Wednesday, in a move outlined in the 2017 State Budget that is expected to raise €80 million in State revenues this year.

The price of a bottle of soft drink with up to 80 grams of sugar per litre will rise by €0.15 and drinks with more than 80 grams of sugar per litre will cost another €0.30. The price rises include VAT (value added tax).

As of Wednesday non-alcoholic drinks containing sugar and other sweeteners, alcoholic drinks with an over 0.5% vol. or less than 1.2% vol. (such as wine, vermouth, cider and mead) will be subject to the new tax.

Non-alcoholic drinks such as water, including mineral water and carbonated water, with added sugar and other sweeteners or flavourings will also be taxed and tax revenues will be channelled into the Portuguese National Health Service.

The tax on the products will be €8.22 per hectolitre (100 litres), for beverages containing less than 80 grams of sugar per litre, and €16.46 for those containing over that amount.