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The Minister of Health of Estonia does not plan to introduce a sugar tax in the near future, despite potential positive changes.
agricultural products
Sugar

The Minister of Health of Estonia does not plan to introduce a sugar tax in the near future, despite potential positive changes.

The Minister of Health of Estonia does not plan to introduce a tax on sugary products in the near future, despite suggestions from analysts. The decision is driven by insufficient evidence of the effectiveness of such a tax and already planned tax changes.

1 May 2024 1 May 2024

The Minister of Health of Estonia, Riina Sikkut, expressed her position, suggesting that a tax could be imposed on sugary drinks, but not on all products containing sugar. However, she emphasized that there are no immediate plans to introduce such a tax in the country, as reported by ERR News.

This statement was made in response to an analysis commissioned by the Estonian Ministry of Social Affairs, in which analysts Andres Vark and Magnus Piirits proposed considering the introduction of a sugar tax. Scientists argue that such a tax would increase the price of sugary drinks, leading to a reduction in their consumption and positively impacting public health.

Sikkut noted that a similar initiative was discussed about 6-7 years ago, but at that time it was concluded that society was not yet ready for such a tax. She is surprised that this issue has become relevant again, given that a sugar tax, especially on sugary drinks, is already in place in many countries.

The Minister emphasized that the current government coalition is not considering the introduction of an additional tax at the moment. In the near future, she does not see the possibility of making such a decision, considering the tax changes already planned.

Sikkut reminded that the previous rejection of the sugar tax was due to insufficient evidence of its effectiveness. The introduction of such a tax is not a significant source of revenue for the budget, but it can be a tool to influence the behavior of young people, who are more sensitive to price changes, and help reduce the consumption of sugary drinks.

An analysis including the issue of a sugar tax will be presented on May 22. Sikkut noted that in the coming years, healthcare will require additional funds, considering the projected deficit in the Health Insurance Fund budget of 167.3 million euros by 2025.

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