Theresugar tax’ in Italy, or sugar-sweetened beverage tax, will come into force on 1 July 2025 and consists of a volumetric tax on products with added sugars (SSB, Sugar-Sweetened Beverages) that contain more than 25 grams of sugar per litre. This measure is part of a global effort to combat obesity and non-communicable diseases (NCDs) linked to excessive consumption of sugary drinks. The tax is set at €0,10 per litre for all SSBs exceeding the threshold sugar, with the aim of discouraging excessive sugar intake and promoting healthier beverage choices.
Sugar tax in Italy, the tax mechanism
In Italy the ‘sugar tax’ was designed as avolumetric tax, that is, it is applied only on the basis of the volume of beverages subject to it, regardless of their sugar content. This approach simplifies the tax structure, but appears crude because it is not capable of incentivizing the reformulation of products.
The tax applies to all SSBs, including carbonated soft drinks, iced teas, fruit drinks and energy drink, but excludes drinks with less than 25 grams of sugar per litre, such as diet drinks and some fruit juices.
The tax is levied on producers, who are expected to pass the cost on to consumers through higher retail prices. Empirical studies suggest that producers often increase consumer prices above the tax rate. This phenomenon could therefore lead to moderate price increases for consumers.
Possible impact on sugar intake and health
The main objective of the Italian sugar tax is to reduce SSB consumption and, consequently, sugar intake. According to simulations (Tiboldo et al., 2024), the tax could lead to a average 18% reduction in SSB consumption and a decline in 24% in sugar intake.
The tax encourages consumers to switch to low (or no) sugar alternatives, which may have long-term health benefits. However, its effectiveness in promoting product reformulation is limited by its fixed rate structure, that does not provide strong incentives to reduce sugar content below the 25 gram threshold.
‘Sugar tax’, the European context
In Europe, 10 countries and one region have implemented taxes on sugary drinks, using two different approaches: volumetric taxes, which apply a fixed tax per litre regardless of the sugar content (above a pre-established threshold), and taxes proportional to the sugar content of individual drinks:
volumetric taxes. The Belgium (2016) applies a flat tax per litre of drinks, as does theHungary (2011) where the tax is also extended to a greater number of foods, including solid ones. The Norway introduced a flat per-litre tax on sugary drinks over a century ago, in 1922, and increased it in 2018. The Poland (2021) primarily follows a volumetric model, yet includes an additional charge for added sugar content;
taxes based on sugar content (two-level or graduated) are applied in France, since 2018, after six years of application of the volumetric model (2012). The UK (2018) has in turn implemented the Soft Drinks Industry Levy (SDIL), with two rates, a lighter one for drinks with ≥5g of sugar/100ml and a ‘saltier’ one for those with ≥8g of sugar/100ml subject to a higher rate. TheIreland (2018) follows a similar model, taxing beverages in the same two sugar bands. The Portugal (2017) introduced a two-tier system, while Lithuania (2019) and Latvia (2016) apply taxes proportional to the sugar concentration. The region Catalonia (2017) taxes drinks with more than 8g sugar/100ml at a higher rate.
Policy implications and recommendations
The Italian ‘sugar tax’, although effective in reducing the consumption of SSB and sugar, could be improved by adopting a graded structure based on sugar content. This would provide stronger incentives for producers to reformulate their products and reduce sugar levels. In addition, tax revenues, estimated at at least 47 million euros per year, could be reinvested in health programs aimed at low-income families and children, also with the aim of making the tax more fair.
Overweight, obesity and diabetes in Italy
Italy addresses significant challenges regarding rates of overweight, obesity and diabetes among adults and children:
obesity and overweight in adults. A studio conducted by the Istituto Superiore di Sanità (ISS) on 110.742 subjects interviewed in each Italian region, during the period 2017-2020, shows that 42,4% of adults in Italy have an excessive body mass index (BMI = weight (kg)/height (m²). In detail, 31,6% of the adult population is overweight (BMI 25-29,9), 10,8% is obese (BMI ≥ 30);
Overweight and childhood obesity. Italy reports worrying data regarding overweight and obesity in children. Data on over 50.000 children indicate that the 20,4% are overweight, 9,4% are obese and 2,4% are severely obese, according to the International Obesity Task Force criteria. These rates are even higher if WHO growth references are used. In particular, the Campania region, which includes Naples, has an overweight rate of 43% among children, with 18,6% classified as obese;
prevalence of diabetes. In 2023, nearly 6,3% of the population (3,7 million, out of 58,99 million individuals) in Italy lives with diabetes. This prevalence underscores the magnitude of the nutritional challenge and the extraordinary public health costs associated with excessive sugar intake and unbalanced diets.
Conclusion
The Italian sugar tax represents a significant step in the fight against obesity and non-communicable diseases. Although it is effective in reducing SSB and sugar consumption, its flat rate structure limits its potential to incentivize product reformulation. The positive experiences of other large countries, such as France and the United Kingdom, could guide Italy towards a sugar tax reform that introduces a proportion between the tax and the sugar content of SSB.
The above mentioned statistics highlight, however, the need and urgency of a broader nutritional policy, in Italy, to address the growing trends of overweight, obesity and diabetes in all age groups. A policy that should therefore include:
an effective and easy-to-understand front-of-pack nutritional labelling (FOPNL) system, such as the Nutri score, widely adopted in nine European countries and proven effective and useful by over 150 scientific studies;
tax measures extended to all ultra-processed foods with unhealthy nutritional profiles.
Dario Dongo
References
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Bonnet, C., and Réquillart, V. (2013). Tax incidence with strategic firms in the soft drink market. Journal of Public Economics, 106, 77-88. https://doi.org/10.1016/j.jpubeco.2013.06.010
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Tiboldo, G., Castellari, E., and Moro, D. (2024). The distributional implications of health taxes: A case study on the Italian sugar tax. food policy, 126, 102671. https://doi.org/10.1016/j.foodpol.2024.102671
Overweight and obesity – BMI statistics. Data extracted in July 2024. Eurostat. https://tinyurl.com/bdr442s5
Diabetes in Italy – Statistics & Facts. The report of Statista. https://tinyurl.com/bdemb82h
Epicenter, Epidemiology for public health. Steps, 2017-2020. ISS (Superior Institute of Health). https://tinyurl.com/dbnvwbfs
Dario Dongo, lawyer and journalist, PhD in international food law, founder of WIISE (FARE – GIFT – Food Times) and Égalité.
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