Brewers’ Association surprised by soft drinks tax hike: “Quite an increase”

The federation representing companies in the sector cannot yet estimate the impact of the €50 million tax increase on product prices.

The government’s decision to increase the soft drinks tax will not cheer the brewing and soft drinks sector.

The government announced a €50 million tax increase on Wednesday when it published the outcome of its mid-term negotiations.

– EUR 50 million on top of the EUR 219 million already collected is quite an increase.

In Finland, many of the large companies in the brewery industry also produce soft drinks, whereby Pipinen says the increase is quite small for companies.

– It seems that when in the last meters of government negotiations, there is a need for an extra million, there is always a strange thing to do (paying), Pipinen estimates.

The effect of the tax increase, for example, on the price of a lime, mineral water or energy drink or bottle, is not yet able to estimate.

– The price always affects demand. The higher the price, the more precisely the consumer will have to consider whether he can afford this product to consume.

The tax on a sugar -free drink is less than sugar.

According to the Brewery and soft drinks Association, the consumption of water products in soft drinks increases steadily and more than half of the soft drinks are already sugar-free.

The sector employs about 3,800 people in Finland. CEO Lasse Pipinen is not going to assess the impact of tax tightening on industrial jobs.