The ministry has proposed a sliding scale, under which sugary drinks will be taxed between 5 and 10 cents per litre depending on the sugar content.

The rate for non-alcoholic beverages containing sweeteners would be 10 cents per litre, according to the draft bill published on Monday.

Also to be taxed are drinks in the form of syrup, powder and tablets (10 cents per litre) as well as energy drinks (20 cents per litre).

The excise duty will not apply for water and mineral water without added sugar or sweeteners, fruit and vegetable juices and nectars, non-alcoholic beers, non-alcoholic beverages sweetened with steviol glycoside and baby food.

A value added tax at a 9.5% rate is currently paid for non-alcoholic beverages in shops and at a 22% rate in bars.

The new taxation, which is expected to bring EUR 4.7m a year to the budget, aims to reduce the consumption of sugary drinks for health purposes, especially among young people.

It is expected that prices in retail and bars will go up by around 10% as producers and importers will have the option of transferring the burden on consumers.

The proposal, which is opposed by beverage producers, will be in public debate until 8 December.