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July 19, 2022

Romania to introduce hike in tax on sugary drinks

A separate increase in alcohol duty from next month will be the first since 2015.

By James Beeson

Romania’s government has approved new fiscal measures including an increase on alcohol excise duty from this month and a hike in the value-added tax (VAT) on sugary drinks from January 2023.

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The move, announced last week, will see the VAT of non-alcoholic drinks containing added sugar, sweeteners and flavours increase from 9% to 19% as of 1 January next year.

The increase in alcohol duty from next month will be the first since 2015. In 2016, the country announced plans to lower the excise rate on spirits in the country by 30%.

Romania hopes to boost public revenue by US$2.82bn through the measures, which also include increases on tobacco duty, dividend and property taxes and a higher levy on gambling winnings.

A further measure likely to impact beverage and hospitality companies is the introduction of an obligation for SMEs to accept debit, credit or pre-paid cards as a method of payment, providing their annual turnover exceeds EUR10,000 (US$10,135).

Romania collects budget revenue equivalent to around 30% of its GDP, which is below the EU average of 46%, and spends most of it on public sector wages, pensions and subsidies.

The country’s soft drinks market was worth US$3.08bn in 2021, according to figures from GlobalData. By 2027, the sector is forecast to be worth US4.50bn, giving it a ten-year compound annual growth rate (CAGR) of 5.08%.

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Free Whitepaper
img

Understand the impact of decreasing sugar consumption on the F&B market

Growing consumer concern regarding health and wellbeing has increased the focus on reducing sugar consumption. This has driven food and beverage manufacturers, alongside governments, to take measures to meet this challenge. In addition, the pandemic heightened the focus on self-care, including implementing healthy eating to support the immune system. Now more than ever, consumers are paying attention to the amount of sugar and calories in the products they purchase. Access GlobalData’s new whitepaper, The Sugar Reduction Challenge – Past, Present and Future Outlooks within Beverages, to better understand the recent trends in sugar demand, how manufacturers and governments have responded to the challenge, and what solutions are available to the industry. The white paper covers:
  • The key factors behind the recent trends in sugar consumption
  • What is driving consumer choices when shopping for food and beverages?
  • How companies and governments are stepping up their efforts to meet consumers’ expectations
  • The outlook for sugar demand
  • Which ingredients stand to benefit from these future developments?
Enter your details here to receive the free whitepaper.
by GlobalData
Enter your details here to receive your free Whitepaper.

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