The 2025 Social Security Finance Act introduced a new tariff structure for the contribution on non-alcoholic beverages containing added sugars. Since 1 March 2025, businesses in the agri-food sector have been applying these new rates, which significantly simplify the existing taxation system.
A Simplified Tariff Structure
Until 28 February 2025, the taxation of sugary drinks followed a progressive scale, with rates determined by sugar content brackets. This detailed approach resulted in a tax ranging from €3.50 to €27.34 per hectolitre (hl), plus an additional charge of €2.32 per kg beyond 15 kg of added sugars per hl.
Since 1 March 2025, this system has been replaced by a simplified three-tier structure:
A Simplified Tariff Structure
Until 28 February 2025, the taxation of sugary drinks followed a progressive scale, with rates determined by sugar content brackets. This detailed approach resulted in a tax ranging from €3.50 to €27.34 per hectolitre (hl), plus an additional charge of €2.32 per kg beyond 15 kg of added sugars per hl.
Since 1 March 2025, this system has been replaced by a simplified three-tier structure:
The Impact of This Reform
This revision has led to several significant changes:
Administrative simplification
Fewer brackets mean a more straightforward tax management process for businesses.
Higher taxation on highly sugary drinks
Beverages containing more than 8 kg of added sugars per hl are now taxed at €35 per hl, compared to the previous €27.34 + €2.32 per kg.
Slight reduction for low-sugar drinks
Products with less than 5 kg of added sugars per hl now benefit from a fixed rate of €4, similar to the previous tariff.
The revised tariff system aims to simplify tax application and encourage lower sugar content in beverages. Businesses must comply with these new rules, in force since 1 March 2025, by adjusting their pricing and production strategies accordingly.
This reform may also influence consumer behaviour, potentially leading to increased demand for lower-sugar drinks. Time will tell whether it brings about a noticeable shift in purchasing habits!
Does this reform affect your business? Ensure that your tax declarations are up to date and monitor the impact on your costs and pricing strategies.
