Sugar tax, huge harm to a provide chain already within the stability. Jobs in danger and… The interview
A very good intention and an incredible danger. The “sugar tax”, a tax that may in all probability come into power in July 2025, brings with it these two features: discouraging the consumption of sugary drinkswith the hazard (which is extra of a logical consequence) of doing loads of hurt to your complete provide chain.
But which merchandise are particularly affected? And what would be the influence of the brand new and mentioned rule in the marketplace? Answering our questions is Giangiacomo PieriniPresident of Assobibe (the non-alcoholic drinks affiliation), in addition to Corporate Affairs and Sustainability Director of Coca Cola Hbc.
How will the brand new tax work?
Taking final Saturday’s amendments as legitimate, the legislation will consequence within the discount of the speed from ten to 5 euros per hectoliter for completed merchandise and from 0.25 to 0.13 euros per kilo for diluted merchandise.
All non-alcoholic drinks, nonetheless or carbonated, with or with out energy will probably be affected. It does not matter whether or not there’s sugar or not, so long as a sweetener seems inside and the “sport” is finished. In brief, from Coca-Cola to iced tea, passing via tonic water.
After the varied postponements of Conte, Draghi and Meloni herself (twice), did you anticipate this acceleration?
No, the announcement got here like a bolt from the blue.
What influence do you anticipate in the marketplace?
We estimate a drop of round 5 thousand jobs. Then, for shoppers, introducing this tax is equal to a rise in costs. It is a fragile sector, it can not endure any additional shocks. The results will probably be devastating. And that is just for a few cents.
Doing the mathematics, in our case the tax burden would enhance by round 14% with the approval of the sugar tax. This would naturally be accompanied by a collection of extra prices for companies. Between software program updates and the coaching of employees who must ship the information to the ministry, simply to provide some examples, there’s concern for a sector that isn’t doing nicely.
The sugary drinks sector has been in extreme disaster for years. Covid, with the just about complete cease to the Ho.Re.Ca sector, has strongly affected our market, made up of merchandise usually consumed in moments of socializing and sharing.
In element, lately there was a pointy decline within the consumption of sugary drinks, which has fallen by 27%. Only in 2023, for instance, did the sector shut with a 5% drop in volumes. Should it cross, the legislation may have a really critical influence.
Will this implication a minimum of deliver well being advantages?
This rule was made by the Mef solely to boost money. In truth, it has not had nice advantages on the well-being of individuals within the international locations the place it already exists. Realities equivalent to Denmark, Australia and Norway have triggered it to fall.
It’s all about cash, actually it does not come from the Ministry of Health with which we’ve got been speaking for 30 years now. Among different issues, the candy drinks sector has minimize sugar by 41% from its merchandise. The market is transferring in the direction of sugar-free and firms have observed this for a while. But the sugar tax is a blow of one other variety.
How a lot would the general public accounts achieve then?
Crumbs. The authorities expects to acquire 70 million euros. But taking, for instance, Great Britain, the place this tax is already operational. The proceeds have been roughly half of these anticipated.
However, along with the dangers for the availability chain and all its elements, it might even be needed to think about the truth that the state coffers would inevitably accumulate much less VAT, as consumption can be considerably diminished (estimated by 16%). I perceive that there are budgetary guidelines to make ends meet, but when we go into the true world the influence is inevitably dangerous for companies and shoppers.
There are those that say that we do not even have political assist for this tax…
This is certainly the case. There is a transversal consciousness of the too hasty structuring of the norm. From the bulk events, together with the Pd, Action and Italia Viva themselves. There aren’t any supporters.