From Coca-Cola to Don Simón Juices: these are the sugary drinks with a VAT increase

A wide range of products will see their price increase more than 10% if the Budgets are approved

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The Government announced yesterday that it “eliminates the application of the reduced VAT for soft drinks, juices and soft drinks with added sugars or sweeteners. “This means that they will be taxed with 21% instead of 10%. As an example, a 330 ml can of Coca-Cola, one of the affected products, will go from € 0.65 to € 0.71.

The Executive of Sánchez defends this measure alleging that “on the one hand it seeks to internalize the negative externality generated by the consumption of said beverages, promoting healthier habits of the population. “It is also indicated in the Budget plan that the State will collect a total of 400 million between the next two fiscal years thanks to the measure. If the Budgets become reality, there will be a series of items that will see their price increased.

Coke

The well-known beverage brand has been affected by the measure. Almost all of its products, not just the Coke ‘standard’ will see its price increased. Your range of drinks Zero Y Light contain sweeteners. Other products of the North American multinational such as Aquarius The Nestea they also contain additives. Powerade, the line of isotonic drinks of the firm, will be seen within the rise, both its soft drink with and without sugar. Boys, owned by Coca Cola, is in the same situation.

Pepsi

Another American multinational company in the sector, PepsiCo, is just as damaged as Coca-Cola. Both the line of classic drinks and those that do not incorporate sugar Pepsi you will see your VAT increased. The rest of the firm’s brands (Mountain Dew, Seven up, Lipton y Gatorade) will also go up in price.

Companies that market private label carbonated soft drinks such as Mercadona they do not escape the measure.

Energy drinks

Energy drinks like RedBull Both in its original version and in its original version, the VAT rate will change due to sweeteners. The same happens with Monster, which in its entire range of beverages, sugary or not, uses additives that will be taxed.

Sodas

The soft drink industry is divided. There are firms that sell sparkling water such as Homemade that indicate the presence of sweeteners on the label. Others like shot they don’t reflect it.

Juices and tonics

The fruit drink without gas, Trina (Schweppes Suntory group) contain sugars and sweeteners. The same happens in the juice Pascual bifrutas. Another well-known brand in the sector, Don Simón, uses sweeteners in some of its products.

It is common in juices called not. Zumosol Y Granini, two important firms specializing in juices, also work with sweeteners. Therefore, these drinks will in many cases see their price increase.

Schweppes, Bitter Kas The Nordic They add sweeteners to their tonics, which will make the cost of these products for cocktails or mixed drinks go up 11%.

A highly questioned measure

Reactions to the announcement have not been long in coming. The Organization of Consumers and Users (TO FATHER) believes that “the Government’s proposal to increase VAT from 10% to 21% on sugary drinks is a questionable measure today given the growing economic precariousness of many families. “Instead, they propose to prioritize lowering the VAT on healthy and staple foods,” if the goal is to fight overweight and obesity.

Vice President of The Coca Cola Company between 2015 and 2017, Marcos de Quinto, rejects the VAT increase frontally and indicates it as ideological.

The Refreshing Drinks Association (Anfabra) qualifies the project as “unfair, discriminatory and with a clear ideological component”. The group regrets that, if the Budgets are approved, it will be “a severe blow to the hotel business and the consumer” that will give “the finishing touch to the hotel business”.

Sources in the soft drink sector remind you that this will not be the only measure proposed that will affect them negatively. The Tax on Single-Use Plastic Containers, whose estimated revenue is $ 491 million, will hit bottling costs.

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