dutch sugar tax

What is the Dutch sugar tax like? According to Peeters, who also discussed this from her role in Spadel, we’re leaning towards the British model. There they tax the amount of sugar per 100 milliliters: if it contains more than five grams of sugar, you pay more for it. This has an impact on drinks that contain lots of sugar, such as energy drinks, become more expensive. As a result, manufacturers reduce the amount of sugar in their drinks, so they are not taxed on it.

Consumption tax

There is currently a proposal in the Netherlands for a consumption tax on all beverages, which will be raised from January 1, 2023. It is being sold as a first step towards a sugar tax, but according to Peeters it is a very bad idea. “All drinks, from water to energy drinks, will therefore all receive the same tax for one year: more than 20 cents per liter. So whether you have a bottle of water or a bottle of Red Bull, both go from a basic rate of almost 9 cents per liter to 11 cents per liter.” According to Peeters, it’s nothing more than a steady tax hike. “This in no way encourages healthy choices. It shouldn’t be sold as a step towards a sugar tax, because it’s not.”

According to CEO Spadel, this move has the opposite effect. “A 1.5 liter bottle of Spa Blue costs 1.15 euros, with consumption tax being 1.32 euros. That’s a 15 percent increase. Compare that to a can of Red Bull. For 0.25 liters you pay 1.50. And that would be 1.53 euros: a 3-cent increase,” Peeters said. “Since everyone is paying the same 11 cents per liter, the increase is lower if your product is more expensive.” And that goes against the sugar tax, because healthier drinks also become more expensive.

Read also: How to become Bcorp? Marc du Bois van Spadel recounts.

liaison year

However, if the sugar tax is implemented in 2024, this mineral water consumption tax will be abolished. In addition, Spadel’s best-selling products are those without sugar. But Peeters fears that many people will leave the water category by 2023 because it will be very expensive. “We have already seen the effects of inflation. It’s on top of that. And once consumers are lost, it’s very difficult to get them back.”

losses

According to Peeters, the consumption tax for Spadel is a ‘lose-lose situation’. He thought the intention behind it, the move towards a sugar tax, was a good idea. But implementation in this way has a huge negative impact. “The consumption tax we have to pay is five times the net profit of Spadel in the Netherlands. If this is implemented, we will have to seriously consider whether we can stay in the Netherlands.”

Therefore, Peeters sounded the alarm. He hopes something can be changed about the bill, so that no consumption tax is introduced this way. “We like to think of real solutions,” he concludes. The bill still has to pass through the House and Senate.