The introduction of a tribute to products destroying the health of Poles is necessary, but experts point out that, in the proposed form, it violates the principle of freedom of economic activity and equality with the law guaranteed in the Constitution.
The money from the new taxes planned in the bill to amend certain laws in connection with the promotion of health-promoting consumer choices prepared by the Ministry of Finance is to go to the NFZ and be distributed to improve health care. This project provides for additional fees for:
- beverages containing monosaccharides, disaccharides, oligosaccharides, foodstuffs containing these substances and sweeteners referred to in Regulation (EU) 1333/2008 dated 16 December 2008 on food additives (OJ L 354 to 31 December 2008, p. 16 as amended), caffeine, guarana or taurine (for each litre of beverage containing one substance – 70 groats, with a content two such substances – 80 groats, in addition to the active substance – 20 pennies);
- alcoholic beverages in small-volume packages (up to 300 ml), i.e. ‘peasels’; advertising of dietary supplements (1 PLN from each bottle;
- advertising of dietary supplements (10% the value of the promotional service).
In the defence of supplements
While the so-called "sugar tax" has ceased to raise objections, the taxation of advertising supplements is often assessed negatively, at least in the shape as it is proposed in a project in which all supplements are inserted "in one bag’, while many of them are sometimes a necessary part of maintaining health (e.g.
supplements for pregnant women or vitamin D for children).
Furthermore, the Polish Union of Drug Manufacturers Without a Recipe (PASMI), which conducts self-regulation actions of this segment of the market, points out that the proposed charge introduces illegal multiple taxation and violates the constitutional principle of freedom to conduct business, as the project prohibits the imposition of an additional charge on income costs.
Market failure by defective law
Negatively evaluates the draft tax on advertising supplements also Polish Confederation Lewiatan.
- In our opinion, contrary to the intentions of the government, the new tax will adversely affect the health and safety of Poles. Dietary supplements are a type of food that positively affects the body. They help improve the irrational way of feeding. They are often used as a supplement to pharmacotherapy. They strengthen the body, e.g. pregnant women, athletes, people with impaired immunity, infants. It is not true that they have a negative effect on the nutritional habits of citizens. Once the fee is introduced, their prices will rise dramatically. They'll be less accessible. They will become elite products, available to the rich," says Arkadiusz Grądkowski, expert Polish Confederation Lewiatan.
Leviathan points out that the imposition of fees on advertising of dietary supplements will shift the funds allocated to their promotion and advertising to companies that have not signed an agreement on the rules for the dissemination of advertising of dietary supplements, or self-regulatory code.
‘Agreement with 25 November 2019 on the rules for the dissemination of advertising for dietary supplements, signed by television broadcasters and food supplements producers organisations.). It was a response to concerns about the use of dietary supplements in the context of advertising content and consumer awareness.
New taxes are due as of April. The government still has time to perfect the law. Perhaps the solution would be a new naming introduced within supplements so that special needs supplements will be released from the additional promotion fee.
Author: Katarzyna Kołbuś
Editor leading RB Magazine. From Over 10 years related to industry press, including the Financial Gazette and portal ipip.com.pl, which is devoted to finance, taxation, law, politics and the economy. She graduated from Polish philology at the UMCS and the linguistic text editing at the University of Warsaw