Poland’s Sugar Tax Expansion: Government Targets Energy Drinks for 2027

Starting January 1, 2027, the Polish government plans to expand the existing sugar tax to include energy drinks and additional sweetened products to curb consumption and boost healthcare funding.

New Legislative Effort Despite Previous Veto

The Ministry of Finance has relaunched a legislative project to increase sugar tax rates and expand the scope of taxed products. This move follows a presidential veto in 2025 by Karol Nawrocki, who previously rejected the proposal on the grounds that it was primarily a fiscal measure rather than a genuine public health initiative.

Government officials argue that the current regulations are no longer effective, as producers have learned to circumvent them by modifying recipes. The proposed changes aim to tighten these rules and generate additional revenue for the National Health Fund.

Revised Tax Rates and Affected Products

The proposed legislation significantly raises the stakes for the industry. The base rate for beverages containing up to 5 grams of sugar per 100 ml will increase from 0.50 PLN to 0.70 PLN per liter, while the surcharge for each additional gram of sugar will double from 0.05 PLN to 0.10 PLN.

The most dramatic change targets energy drinks. The fee for beverages containing caffeine or taurine will jump from 0.10 PLN to 1.00 PLN per liter. Under the new rules, the maximum possible tax per liter will rise from 1.20 PLN to 1.80 PLN.

Closing Market Loopholes

The government intends to eliminate exemptions that allowed manufacturers to avoid taxes by adding small amounts of fruit juice or replacing sugar with sweeteners. If a product contains sweeteners, caffeine, or taurine, the presence of juice will no longer provide immunity from the tax.

The Ministry of Finance anticipates that this will lead to price increases across various segments. Estimated price hikes range from 15.1% for carbonated drinks to 18.8% for beverage concentrates, though final retail pricing will ultimately rest with producers and retailers.

Fiscal Impact and Legislative Timeline

The Ministry of Finance estimates the new regulations could generate approximately 1.486 billion PLN annually, with over 1.25 billion PLN earmarked for the National Health Fund to support disease prevention and treatment.

The bill is currently undergoing public consultation until mid-July. If the legislative process concludes successfully, the new rates are scheduled to take effect on January 1, 2027, with the government advocating for a shortened transition period due to public health priorities.