Introduction of excise tax on carbonated drinks: prices may increase by 10-20%

Sweet carbonated drinks in Ukraine may increase in price by 10-20% if the bill providing for the introduction of an excise tax on sweet and flavored drinks is adopted. However, the bill has been in the Verkhovna Rada for more than two years, and it is currently unknown when, in theory, it can be considered in the first reading.

This was stated in a comment to UNN by People’s Deputy, one of the authors of the bill, head of the VR Committee on State Power Organization, Local Self-Government, Regional Development and Urban Planning, Olena Shuliak.

DetailsAs Shuliak said, the bill was registered back in 2023, but it has not yet been possible to move it. Only on July 17, 2024, the Verkhovna Rada Committee on Finance, Tax and Customs Policy supported bill No. 9032-1, moreover, at the beginning of February 2025, the bill was included in the Verkhovna Rada’s agenda.

The Verkhovna Rada Committee supported the excise tax on sugary carbonated drinks17.07.24, 16:32 • 24745 views

However, it is currently not possible to pass it through the session hall even in the first reading. Not because of the specifics of the bill, but because many important legislative initiatives do not make it to the agenda today. For comparison – our bill No. 10308, which aims to streamline the rules for placing MAFs and parking lots in Ukraine and the conditions for obtaining permits for this, like bill No. 9032-1, was registered back in 2023, but it has also not been able to be considered by the Verkhovna Rada for more than two years. Moreover, now bills that are Ukraine’s obligations under the Ukraine Facility program, under which we receive 50 billion euros from the EU until 2027, do not always make it to the agenda. So I repeat – political will is needed

She emphasized that she cannot predict how much the prices of Coca-Cola, Fanta, Pepsi and juice-containing carbonated drinks may increase.

But, as far as I know, there are forecasts that drinks such as Coca-Cola, Fanta, Pepsi and juice-containing carbonated drinks may increase in price by 10-20%. To compensate for this, some manufacturers may, for example, reduce the volume of packaging – for example, instead of 2 liters – 1.75 liters, to be able to keep the current price, or simply reduce the sugar content so as not to fall under the excise tax.

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She also emphasized that this is an important bill and the introduction of an excise tax on sweet drinks is not just another tax initiative.

In my opinion, this is a step that, in addition to additional budget revenues, will contribute to the health of our citizens. Ukraine is already facing the consequences of excessive sugar consumption: 91% of deaths are from non-communicable diseases, most of which are cardiovascular. One liter of sweet carbonated water contains more than the daily norm of sugar – and millions of Ukrainians, including children, consume such drinks every day. Therefore, the excise tax is a mechanism that will reduce the availability of harmful drinks and become a tool for disease prevention. In general, this is not a purely Ukrainian initiative – the world has long chosen this path. More than 50 countries have already introduced taxes on sweet drinks, and our rate of 0.1 euro per liter corresponds to the average European level. We have taken into account the experience of the EU and adapted it to Ukrainian realities. This initiative was supported by relevant committees, and it complies with Ukraine’s international obligations within the framework of European integration. This is a step that will not only reduce the consumption of harmful products, but also strengthen state policy in the field of healthcare.

In addition, according to her, it is fundamentally important that additional funds will not just go to the budget, but will be clearly directed to socially beneficial things. Half of the proceeds will go to the prevention of infectious and non-infectious diseases, the other half – to school meals.

That is, we are not just limiting sugar consumption, but also investing in the health of Ukrainians – both current and future. This is a responsible approach that allows the state not to patch up the consequences, but to work proactively.

AdditionEarlier, UNN reported that a bill was registered in the Verkhovna Rada that provides for the introduction of an excise tax on sweet and flavored drinks, which could increase the prices of these drinks by 5 hryvnias.

In a comment to UNN, People’s Deputy, member of the Committee on Finance, Tax and Customs Policy Nina Yuzhanina said that if the bill is adopted, according to the Ministry of Finance’s calculations, budget revenues will amount to 6.9 billion hryvnias per year.

She emphasized that given that large associations have written objections to the implementation of this tax, it is probably not being considered.

And so that we all understand, although they say that such a tax exists in more than 50% of the world’s countries, … we (have – ed.) difficulties in administration. Even the fact that the taxation of such harmful goods as tobacco products and alcohol has been working for years does not give much result. That is, there is a very large shadow sector of production, and, for example, it is not very successful in fighting for the health of the nation by solving these issues through raising taxes. Therefore, I cannot even understand how this will affect… 0.1 euro from the sugar content per 1 liter of drink.

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