Portugal’s taxation of sugary soft drinks has helped trigger a 25% drop in their consumption.
Purchases of sugar-laden drinks fell 25% between February and July 2017, after a new 'health tax' was imposed and the Ministry of Health now plans to apply the tax on a wider range of soft drink products.
The public has started to turn away from sugary drinks to those with a lower sugar content, which are cheaper by comparison.
In February, sugary drinks accounted for 45% of the total sales of soft drinks. By July, this ratio has changed dramatically to 27% 'sugar-rich' and consequently, 73% of less sugary drinks.
“In six months, a very short space of time, there was a large transfer of consumption, which is very positive," said Secretary of State for Health, Fernando Araújo.
The treasury is happy too as the new tax already has raised €46.7 million and should hit the year-end target of €80 million, as per the 2017 State Budget.
But the taxman wants to introduce another taxable band of sugar-filled drinks to put producers under pressure to reduce sugar content - and to rake in more money
The industry has been adapting to the tax, with Sumol reducing the sugar content in its range in order to pay less tax. Coca-Cola has also been pushing Coca-Cola Zero in its advertising to encourage consumption of a drink that does not attract the 'health tax.'
Other measures have helped to encourage consumers to make the switch, such as banning sugar-filled drinks in vending machines in health centres and hospitals.
Consumers are reacting to sugar content and the unit price rises caused by the new tax. A 330ml can of Coca-Cola, for example, contains 35 grammes of sugar - the equivalent of 7 teaspoons - which is viewed by health professionals as an absurd amount of sugar in just one drink.
