The government wants to introduce a tax on soft drinks with sugar, under the pressure of the budget deficit | Progresiv
The Romanian government intends to introduce a tax on soft drinks containing sugar, which is one of the austerity measures currently being analyzed by the Ministry of Public Finance. 
The initiative aims at a rapid increase of receipts to the state budget, given that the budget deficit reached 20 billion lei at the end of the first semester of 2019, representing 1.94% of Romania's GDP. The annual target assumed by Romania to the European Union is 3% of GDP. Four months ago, the same project, also initiated by the ruling party, was rejected by vote in the plenary of the Chamber of Deputies on the grounds that the measure is discriminatory. Among the austerity measures currently analyzed by the Executive are the increase of excise duty on tobacco products.
Strong reactions from the industry producers
The National Association of Soft Drinks (ANBR) had a prompt reaction in the press: “ANBR found with great surprise, from the media, the intention of the Romanian Government to introduce an additional tax for soft drinks containing sugar. We consider that this measure would be discriminatory and disproportionate, and its sole purpose seems to be to increase the revenue to the state budget", shows the statement issued by the association. ANBR also considers that the tax is inefficient due to the negative impact on the economy and because it does not generate changes that will lead to the improvement of the population health. "At the same time, the tax is discriminatory because soft drinks represent, on average, only 3% of the daily caloric intake of an adult", adds the press release.
ANBR gave as an example the market in Denmark where the taxation of soft drinks with sugar was dropped in 2014 because no beneficial effects were found for the health of the population (by reducing the consumption of sugar), instead the soft drinks industry was affected in the long term.
Romalimenta association also sent its point of view on the overtaxation of this category of products, asking the Government to initiate the dialogue with the soft drinks industry before deciding to implement such measures.
“The imposition of a tax on non-alcoholic food or beverages is incorrect because it penalizes everyone, regardless of lifestyle and eating habits. The surcharge will have a negative impact on the Romanian agriculture and food industry and will lead to considerable reductions in the taxes and contributions of the producers affected to the state budget, as well as those of the sectors with which they have economic relations (suppliers, distributors, etc.), as well as at the decrease of the production and implicitly the reduction of the number of jobs”, emphasized the Romalimenta representatives.
