The Sugary Drinks Tax Bill passed the first reading

NordenBladet —

The first reading of the Sugary Drinks Tax Bill (418 SE), initiated by the Government, which had been adjourned due to the end of the working hours of the sitting on Tuesday, was continued.

Under the Bill, a sugary drinks tax will be introduced from 2026 with the aim of reducing the use of sugar and sweeteners in sugary drinks.

The new tax is intended to encourage people to consume drinks with lower sugar content or without sugar and sweeteners. According to the Bill, the tax rate levels will depend on the sugar content of the product and the use of sweeteners. According to the Bill, drinks with a sugar content of at least five grams per 100 millilitres and/or to which sweeteners have been added will be taxed.

If the sugar content of a sugary drink is between five and eight grams per 100 millilitres, the tax rate will be 0.15 euro, and if the sugar content is more than eight grams, the rate will be 0.45 euro per litre.

Drinks containing only sweeteners or both sweeteners and sugar with a sugar content of less than five grams per 100 millilitres will be subject to a tax rate of 0.15 euro irrespective of the quantity of sweetener, and where the sugar content of such a drink is between five and eight grams per 100 millilitres, a tax rate of 0.3 euro per litre will be applied.

If a sugary drink is to be diluted or dissolved for consumption, it will be taxed according to the quantity of the drink diluted or dissolved according to the recommendation of the manufacturer, and its sugar and sweetener content. In the absence of a recommendation to dilute or dissolve, such a drink will be taxed on the basis that it is diluted or dissolved at a ratio of 1:6.

According to the Bill, the sugary drinks tax will be paid by the importer of the drink, the person who acquires the drink from another European Union member state, or the Estonian manufacturer when the drink is made available in Estonia for the first time. Fruit, berry and vegetable juices with no added sugar or sweeteners, dairy products, and plant-based drinks consumed instead of milk will be exempt from the tax, as will be, for example, alcohol, medicines, and food supplements, and beverages prepared on the spot at the point of sale, in bulk and intended for immediate consumption.

During the debate, Eero Merilind (Reform Party), Lauri Laats (Centre Party) and Arvo Aller (Estonian Conservative People’s Party), Tanel Kiik (Social Democratic Party) and Helir-Valdor Seeder (Isamaa) took the floor.

The Estonian Conservative People’s Party Group, the Centre Party Group and Isamaa Parliamentary Group moved to reject the Bill at the first reading. 22 members of the Riigikogu voted in favour of the motion and 51 were against and the Bill passed the first reading.

The deliberation of a Statement was adjourned

The deliberation of the Draft Statement of the Riigikogu “On Declaring the Moscow Patriarchate an Institution Sponsoring the Military Aggression of the Russian Federation” (420 AE), submitted by 52 members of the Riigikogu, was adjourned due to the end of the working hours of the sitting. With the Statement, the Riigikogu condemns the actions of the Moscow Patriarchate in justifying and supporting Russia’s aggression against Ukraine and declares the Moscow Patriarchate an institution sponsoring the military aggression of the Russian Federation. In the Statement, the Riigikogu also calls on all states and the international community to suppress the hostile influencing activities of the Moscow Patriarchate.

According to the draft Statement, declaring the Moscow Patriarchate an institution sponsoring the military aggression of the Russian Federation concerns the Moscow Patriarchate as an institution and a directing body and not the people who follow Orthodox traditions. “Orthodox associations and congregations should also do their own assessment of the threat to public order and their members caused by the hostile influencing activities and take the necessary steps to cut their ties with the Moscow Patriarchate. The Republic of Estonia must preserve the constitutional right to religious freedom, taking into account the rights and freedoms of all people living here,” the Statement says.

The deliberation of six drafts was deferred

The second reading of a Bill was deferred due to the end of the working hours of the sitting. It is the Bill on Amendments to the State Budget for 2024 (389 SE), initiated by the Government, which will raise  the minimum salary rate for teachers from 1,803 euro to 1,820 euro, to which a 20 per cent differentiation part will be added. The calculated average of teachers’ salary will increase by a total of 6.6 per cent, to 2,184 euro. For this purpose, 9.27 million euro will be directed to the local governments support fund in the state budget.

The first reading of five drafts was also deferred. They are the Draft Resolution of the Riigikogu “Making a proposal to the Government of the Republic on the establishment of a temporary solidarity tax for the banking sector” (367 OE), submitted by the Centre Party Group, the Bill on Amendments to the Security Activities Act (413 SE), initiated by the Legal Affairs Committee, the Bill on Amendments to the Municipal Council Election Act (387 SE), initiated by Isamaa Parliamentary Group, the Bill on Amendments to the Security Authorities Act (330 SE), initiated by the Estonian Conservative People’s Party Group, and the Bill on Amendments to the Police and Border Guard Act (370 SE), initiated by Member of the Riigikogu Kalle Grünthal.

Verbatim record of the sitting (in Estonian)

Video recording will be available to watch later on the Riigikogu YouTube channel.

Riigikogu Press Service
Maris Meiessaar
+372 631 6353, +372 5558 3993
maris.meiessaar@riigikogu.ee
Questions: press@riigikogu.ee

Link uudisele: The Sugary Drinks Tax Bill passed the first reading

Source: Parliament of Estonia