Also known in Estonian as a "lemonade tax," it "will be applied to beverages when they are made available on the Estonian market for the first time, while the tax is payable by the beverage importer, purchaser from another EU member state, or an Estonian producer," the government's website states.

The tax also applies to beverages sweetened with sweeteners such as saccharin, aspartame, thaumatin, sucralose, steviol glycoside, to head off such substances being used by manufacturers as a substitute for sugar, the government said.

Within the scope of the bill, beverages and preparations available as food supplements are not considered sweetened beverages.

Fruit, berry, and vegetable juices that do not contain added sugar or sweeteners are exempt from the planned tax, as are milk and dairy products, plant-based drinks consumed as milk alternatives, alcohol under the understanding of the Alcohol Act, medicines, and sweetened beverages used for the production and preparation of medicines.

Sweetened beverages prepared and offered for immediate consumption on-site at the point of sale without packaging, and food intended for medical indications and used as a daily diet supplement aimed at weight loss, are all also exempt in the bill as it stands.

While initially planned to enter into law next year, it has been postponed to 2026.

Forecasts say the bill will bring in approximately €25 million to the state budget in the first year of its existence, though given its intention to reduce the volume of

The bill outlines specific tax rates that vary depending on sugar content, and it scope includes syrup-type drinks which are diluted before consumption.

The planned tax is one of several attempts to raise state revenues, though as noted it will not take effect in 2025. The prime minister has said that for next year, the emphasis will be more on austerity measures rather than tax hikes or new taxes.

A sugary drinks tax, or soda tax, is a policy intervention aimed at curbing obesity and related issues, in the interests of public health and associated economic costs.

Major producers and lobby groups worldwide, such as Coca-Cola, often oppose the levying of such taxes, while the World Health Organization (WHO) has promoted the policy.

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