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1 July sugar tax enters into force

From 1 July 2020 The Act amending certain laws will enter into force in connection with the promotion of health-promoting consumer choices, introducing the so-called sugar tax.

From 1 July 2020 The Act amending certain laws will enter into force in connection with the promotion of health-promoting consumer choices, introducing the so-called sugar tax.

From 1 July 2020 The Act amending certain laws will enter into force in connection with the promotion of health-promoting consumer choices, introducing the so-called sugar tax.

Sugar tax is an excise duty imposed on the sale of sugar-sweetened beverages or other products with a high content. It aims to reduce the mass consumption of these products and thus prevent the socially undesirable health consequences of their consumption. The introduction of such a solution resulted from a recommendation from the World Health Organisation (WHO).

What's the sugar tax?

The fee shall be:

  • 50 gr per litre of drink with added sugar or sweetener
  • 10 gr per litre of drink with added active substance (caffeine or taurine)
  • 5 gr per gram of sugar above 5 gram/100 ml – expressed as a litre of drink

Products not subject to sugar duty

Drinks which are:

  • medical devices,
  • registered dietary supplements,
  • food for special medical purposes,
  • infant formulae,
  • excise goods.

Drinks containing at least 20% fruit juice, vegetable juice or fruit and vegetable juice and those which are isotonics (in accordance with EU Commission Regulation No. 432/2012).

The obligation to pay the fee lies with the entity selling the beverage to the retail point. This occurs at the time of the introduction of the sale, i.e. transfer to the store or transfer to the retail outlet in the case of the sale of its own producer. The fee should be paid once a month.

What are the consequences of an additional tax?

The Polish Federation of Food Manufacturers claims that the new fee may increase the price of beverages in Poland until 40%. The tax will not only affect consumers but also producers and farmers. There have been speculations that Poles will start buying drinks in neighboring countries, where there are no such taxes. This will significantly weaken traditional retail.

The Ministry of Health estimates that revenues from new taxes per year may even 3,000,000,000 PLN. A significant part of the amount is expected to reach the NFZ's account and help to treat developed diseases against the background of inappropriate choices and health behaviour.

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