Sugared drinks tax postponed to 2026

Minister of Health Riina Sikkut (SDE) has presented to the government draft legislation for Estonia's new sweetened beverages tax the entry into force of which has been postponed to January 1, 2026. The initial plan was to introduce the new law from next year.
The minister also requests that the bill be added to the agenda for this Thursday's government session, namely April 11.
According to forecasts, the tax will bring in approximately €25 million to the state budget in 2026. It is expected that tax revenues will decrease in subsequent years as the taxation of sugary drinks encourages people to consume fewer sweet (lower sugar content and without sweeteners) beverages.
The bill outlines specific tax rates.
For sugary drinks with a sugar content of at least 5 grams but less than 8 grams per 100 milliliters, a tax rate of €0.15 per liter of beverage will be applied.
For sugary drinks with a sugar content of at least 8 grams per 100 milliliters, a tax rate of €0.45 per liter of beverage will be applied.
For sugary drinks that contain only sweeteners or both sweeteners and sugar, with a sugar content of less than 5 grams per 100 milliliters, a tax rate of €0.15 per liter of beverage will be applied regardless of the amount of sweetener.
For sugary drinks that contain both sweetener and sugar, with a sugar content of at least 5 grams but less than 8 grams per 100 milliliters, a tax rate of €0.30 per liter of beverage will be applied.
For sugary drinks that contain both sweetener and sugar, with a sugar content of at least 8 grams per 100 milliliters, a tax rate of €0.45 per liter of beverage will be applied.
Sugary drinks that need to be diluted or dissolved for consumption will be taxed according to the manufacturer's recommended quantity of the diluted or dissolved beverage and its sugar and sweetener content. If the dilution or dissolution recommendation is provided as a range, the sugary drink will be taxed according to the highest sugar or sweetener content within that range. In the absence of a dilution or dissolution recommendation, such sugary drinks will be taxed on the assumption that they are diluted or dissolved at a ratio of 1:6.
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Editor: Urmet Kook, Marcus Turovski