Beverage Makers Shocked by Sugary Drinks Tax Proposal
Tatjana Zagorc of the Chamber Commerce and Industry (GZS) said on Thursday that the industry was shocked when the government presented its 2015 budget plans last night.
While Slovenia is facing a development and employment standstill, the government wants to burden the economy even more, she said.
Moreover, the proceeds from the tax will not go into raising consumer awareness, so the effect of the measure is questionable, according to the GZS.
The sugary drinks tax is expected to bring in EUR 8m annually; however the GZS doubts the figure will run as high.
The chamber said in a press release that the sales of non-alcoholic beverages dropped 11% in 2013.
What is more, the consumption of non-alcoholic beverages was down by nearly 25% over the past five years to 83.3 litres a year per person on average in 2013, the press release also said.
The GZS fears that additional taxation will lead to poor competitiveness, drop in investments, as well as pay- and job cuts. The chamber therefore proposes that the government focuses on limiting the grey economy and introducing tax registers.
The Chamber of Trade Crafts and Small Business (OZS) advises the government to focus on raising the awareness of consumers instead of imposing the sugary drinks excise duty.
The OZS moreover pointed out that higher prices of sugary drinks might result in the youth drinking more alcohol, which will be cheaper.