"We decided to withdraw the draft law on the sweetened beverage tax, which had been submitted by the previous government, from parliamentary review," Prime Minister Kristen Michal (Reform) said at the weekly press conference following the government meeting.

The coalition plans to introduce a new defense tax, but no other taxes during this term, he said.

Michal added that opinions on the matter vary but expressed hope they could change over time.

The prime minister noted that any ideas for new taxes could be proposed at the next parliamentary elections, scheduled for 2027.

Minister of Health Riina Sikkut (SDE) said she proposed withdrawing the draft. She said the coalition agreement only allows for new taxes to raise money for defense and security.

However, the broad-based defense tax will also increase VAT – including on sugary drinks.

Sikkut stressed that even without the sugar tax, public health initiatives will continue.

She added that if additional information regarding the impact of sugar taxes from neighboring countries becomes available, the topic could be revisited, noting that "unhealthy dietary trends likely will not be reversed without the use of further instruments in the future."

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