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Poland considers sweeping sugar tax increase

The Polish government plans to increase the country’s sugar tax, change the rules on energy drinks, and extend the tax to include products such as fortified fruit syrups.

The Polish Government has proposed a new draft act to the Public Health Act 2015, which, if approved, will introduce new rules for food and beverage manufacturers. It proposes increasing the country’s sugar tax, changing the rules on energy drinks containing caffeine and taurine, and extending the tax to cover products previously exempt and classified as dietary supplements, according to a translated memorandum from the Polish government’s official website.

At a glance:

• Poland plans to increase its sugar tax, extending it to more products, and raising fees on caffeinated drinks.
• The industry warns that, while the changes are mostly fiscal, they could hurt producers and lack public evidence to support them.
• The draft law, which has a target implementation date of 2027, is currently in the public consultation stage.

In a notice announcing the Draft Act amending the Public Health Act, the Polish Government said these changes are designed to increase the effectiveness of the country’s food tax – often referred to as the sugar tax – by tightening the tax system and updating the tax rate that food and drink manufacturers pay.

The Ministry of Finance and Economy, the body responsible for developing the proposal, also stated that the changes will increase revenue for the National Health Fund (NFZ). Currently, 96.5% of the food tax revenue goes directly to the NFZ, which the government confirmed it uses for educational and preventive measures and to finance healthcare services for treating the effects of overweight and obesity.

In 2025, the NFZ’s costs amounted to around €51 billion (220.2 billion Polish Zloty). According to estimates by the Ministry of Health, costs directly related to obesity, including prevention, diagnosis, treatment of the condition and its complications, could range from €1 billion (4.4 bn Polish Zloty) to €3.6 billion (15.4 bn Polish Zloty) in 2026.

The draft legislation is currently at the public consultation stage. According to the draft submitted for public consultation, the proposed changes would enter into force on 1 January 2027. The legislative process is still in its early stages. The Polish government will first review stakeholders' comments before deciding whether to amend the proposal and submit it to the parliament.

Industry coalition speaks out against Poland’s sugar tax proposal

A total of 20 organisations representing agriculture, food manufacturing, retail and employers, including the Polish Federation of Food Industry (PFPŻ ZP), have called on the Polish government to withdraw the legal proposal in its entirety. “We believe that a well-designed public health policy should encourage product reformulation, support informed consumer choices and be based on evidence,” a spokesperson for the PFPŻ ZP told Ingredients Network.

From the perspective of the PFPŻ ZP, the proposal has a predominantly fiscal character. “The government has not presented evidence demonstrating that increasing the existing tax rates or extending the levy to additional product categories will produce measurable public health benefits,” PFPŻ ZP’s spokesperson said.

“At the same time, no new educational or preventive measures have been proposed, although these are essential to achieving lasting improvements in dietary habits,” the spokesperson added.

Which beverages will be impacted by Poland’s sugar tax changes?

Under the proposed changes to the law, the Polish government would increase the fee on sweetened beverages to limit their economic availability. If adopted, the food tax would cover beverages containing at least 20% juice and up to 5g of sugar. It would also apply to those that contain caffeine, taurine or sweeteners, including energy drinks and beverages containing sweeteners.

The Polish government also proposes a separate fee for concentrated products due to their significantly higher sugar content compared to ready-to-consume products. It would also apply the food fee to dietary supplements in beverage form, excluding those offered for sale in packaging no larger than 200 ml.

The notice gives an example of dietary supplements that would be affected under the updated law, citing those generally sold in pharmacies and intended to support pharmacological treatment, e.g., marshmallow syrup (Althaeae sirupus), syrup with rutin or syrup with Iceland moss extract.

PFPŻ ZP said that the changes would remove existing exemptions for some beverages that currently qualify because of their juice content and reduced sugar levels. A concern is that the products manufacturers have specifically reformulated to meet the objectives of the current legislation would become subject to the levy.

“We believe this undermines previous investments in reformulation and weakens incentives for further sugar reduction,” the spokesperson said.

Another worry is the financial impact on production. “Manufacturers would face substantially higher production costs at a time when they are already adapting to major regulatory changes, including the deposit return system and upcoming packaging and extended producer responsibility (EPR) requirements,” the spokesperson added. The concern is that this may reduce investment capacity, innovation and competitiveness for food and drink companies.

By increasing taxes on juice-containing beverages currently exempt from tax, the trade association also fears that demand for Polish fruit could decline, negatively affecting fruit growers and processors. Likewise, reduced demand for sugar-containing beverages could adversely impact the domestic sugar industry and sugar beet growers.

Weakening competitiveness: A cost too far?

PFPŻ ZP, the trade organisation for Poland’s food industry, believes any sugar tax revision should first involve a comprehensive evaluation of the existing system, including its effectiveness in improving public health, its fiscal performance, its impact on consumers and businesses, and greater transparency regarding the use of revenues generated by the levy.

“The current proposal risks achieving the opposite by penalising products that have already been reformulated, increasing costs for consumers and businesses, and weakening the competitiveness of Poland's food and beverage sector within the European market,” added PFPŻ ZP’s spokesperson.

The coalition also estimates that the proposed changes could increase retail prices by approximately 6% to over 22%, depending on the product category. “Such increases would primarily affect consumers while also increasing the risk of cross-border shopping and informal trade,” the PFPŻ ZP spokesperson said.

The coalition also believes it is important to consider the broader European context. “Poland already has one of the highest effective sugar tax burdens in Europe when measured against consumers' purchasing power,” said PFPŻ ZP’s spokesperson.

In the trade association’s view, the proposed increase would further weaken the competitiveness of the domestic food and drink sector relative to producers in other EU member states, without providing clear evidence that it would deliver additional public health benefits.