Sugar Tax in Spain
The sugar tax in Spain were announced by The Minister of Inland Revenue in 2016. However, the Government refused the bill under the pressure from the industry. One year later, the region of Catalonia announced that all SSBs would be taxed and the taxation is paid by the end buyers regulated by Law 5/2017. In 2021, a SSBs tax was introduced to the rest of the country [3]. The law amendment from 2021 also increased the VAT from 10 to 21%.
The tax is structured as a fixed amount per litre, based on the sugar content. For example, drinks containing 5 grams of sugar per 100 millilitres are taxed at €0.15 per litre, while those with 8 grams of sugar per 100 millilitres face a tax of €0.24 per litre [2].
Impact of SSBs Tax
The impact of the sugar tax in Spain has been the subject of various studies, yielding mixed results. The most recent study published in the International Journal of Behavioural Nutrition and Physical Activity in 2022 provided evidence that an overall purchase of SSBs in Catalonia over the period of three and a half years has decreased by 16.7% after the tax was introduced. The results emerged from the purchase data evaluation among Catalonian households (n=12,500). Additionally, this study reported an increase in the consumption of water and unsweetened beverages as a result of the tax [1].
Public Perception of SSBs
A study was conducted to explore how Spanish people perceive the taxation on SSBs. The study found that an overwhelming majority of the Spanish population (97.2%) believes that excessive consumption of SSBs leads to obesity. Two out of every three individuals expressed support for existing regulations [3].
Those who attributed obesity to SSBs consumption were more likely to support the tax. Additionally, individuals who attributed obesity to environmental causes, such as the price of food, expressed greater support for the tax. Support for the tax increased by 9.2% when participants were first asked about other price measures, such as subsidies or tax cuts on healthy products, before being asked about the tax itself [3].
Overall, the sugar tax in Spain, with its progressive tax rates based on sugar content, has demonstrated positive effects on reducing consumption of sugary drinks and generating public support for healthier choices. Continued evaluation and monitoring of its impact, along with efforts to address public perceptions and preferences, will be essential for optimising the effectiveness of the sugar tax and improving public health outcomes in Spain.
References
[1] Royo-Bordonada, M.Á., Fernández-Escobar, C., Gil-Bellosta, C.J. et al (2022) Effect of excise tax on sugar-sweetened beverages in Catalonia, Spain, three and a half years after its introduction. International Journal of Behavioural Nutrition and Physical Activity 19, 24 https://doi.org/10.1186/s12966-022-01262-8
[2] Global VAT Compliance (2021, March 9) Spain 2021 Tax Law Published: VAT Increase on Sugary Drinks, Thresholds Extended https://www.globalvatcompliance.com/globalvatnews/spain-2021-tax-law-published-vat-increase-on-sugary-drinks-thresholds-extended/
[3] Fernández Sánchez-Escalonilla S, Fernández-Escobar C, Royo-Bordonada MÁ (2022) Public Support for the Imposition of a Tax on Sugar-Sweetened Beverages and the Determinants of Such Support in Spain. International Journal of Environmental Research and Public Health;19(7):3758. doi: 10.3390/ijerph19073758. PMID: 35409442; PMCID: PMC8998005.
