The Dutch government is considering revising its taxation of sugar in non-alcoholic beverages, including soy-based drinks, water, and dairy. Currently, a flat rate of €26.13 ($27.96) per 100 liters applies to all non-alcoholic drinks, regardless of sugar content. The proposed new policy aims to introduce an additional tax based on sugar content levels.
There are five possible scenarios for implementing the sugar tax. The first scenario taxes all non-alcoholic drinks based on sugar content levels, including dairy, soy-based drinks, and mineral waters. The second scenario excludes mineral waters, considering them as healthier choices. Scenario three excludes water, dairy, and soy drinks with low sugar content.
In scenario four, water, dairy, and soy drinks are excluded, while pure fruit and vegetable juices are taxed at the lowest rate. A variant of scenario four excludes pure fruit and vegetable juices as well. The government is aiming for a 2026 launch of the sugar tax regime in the Netherlands, with public consultation currently open.
Each scenario influences the tax levels the government would apply per liter. For example, if scenario four’s variant is selected, a tax of €52.75 per 100 liters would be imposed on remaining beverages like Red Bull. While the Dutch Association for Soft Drinks, Waters, and Juices welcomes the proposed “smart sugar tax,” it notes the increasing tax scale with category exemptions may indicate a revenue-driven motive behind the policy.
According to the association, the government’s approach could lead to significant tax increases, potentially doubling the current tax rate. The association suggests a broader sugar tax, encompassing other sugar-rich products, to maintain revenue and promote healthier drink choices. By adopting a more comprehensive approach, the government could achieve calorie reduction and combat obesity effectively.
