Possible enrollment in the force of Sugar taxDue on July 1, 2025, is causing growing concerns among Italian producers. Beverages Non-Alcoholic Association Whistling Called for an urgent discussion table with the government to discuss it. Adjournment of the tax, arguing that the consequences could be very negative for the sector and public finances.
What is the economic impact of sugar tax?
Second Giangiacomo PieriniPresident of WhistlingThe implementation of the sugar tax will bring significant costs to companies in the sector. “The sector – calculated perini – will have to be supported. Additional costs of more than 2.2 million euros For the necessary formalities for the monthly payment of this new tax”. These costs will particularly affect small and medium-sized businesses. Damages are estimated at between 25,000 and 90,000 euros. For each company.
Also, a study conducted by Nomisma In 2023, it was highlighted that, in addition to the expected decline in sales of soft drinks, the sector will face a decline. 46 million euro investment by manufacturing companies. With a reduction in raw material purchases (food and non-food) worth 400 million euros, this contraction will not only affect the economic health of companies, but also the entire production chain.
Also impacts on sales and tax revenue
Forecasts for two years after the rule went into effect indicate that a Soft drink sales fall by 16% reduction will not only reduce Tax revenue for the state, but it will also result in a significant loss of VAT revenue. 275 million euros.
Perini clarified: “The small revenue expected from the implementation of the sugar tax does not take into account the 275 million euros of VAT revenue lost as a result of the contraction in sales.” A scenario that calls into question the sustainability of the new tax, but not its actual positive impact on public health, which is one of the primary stated goals of the legislation.
In addition to direct costs, a sugar tax could mean increased bureaucracy. “The sugar tax not only dramatically increases the tax burden on businesses, but has a profound impact on bureaucracy, introducing 70 additional business procedures,” warns Perini. Companies will be required to prepare detailed statements of production processes on a monthly basis, even for activities that are not directly tax related. SMEs, in particular, will find themselves filling more than 450 items in the expected initial registration, a burden that may prove unsustainable for many of them.
Assobibe’s Appeal: Sector Concerns
In response to these concerns, Whistling He urged us to find a solution that would not penalize Made in Italy and consumers. “We must form a common front with other trade associations and social forces against a new tax,” Perini declared on the sidelines of the States General of the Food and Beverage Market in Italy.
The association therefore calls for an open dialogue between politics and business, to protect the internal market and promote growth without more taxes and bureaucracy. Assobibe’s plea is clear: “We don’t want grants or aid, but to be able to work and invest in peace.”
The concerns expressed by Assobibe also affect the competitiveness of Italian companies internationally. A sugar tax could penalize beverage producers who promote Italian excellence, creating a context in which local companies find themselves competing at a disadvantage compared to other European countries with similar taxes. Do not apply load. “Made in Italy and citizens will be punished by a strict rule. Quality products without being able to produce direct effects on health”, continues Assobibe.
