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Wednesday 15.08.2018 | Name days: Dzelde, Zenta, Zelda
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Tallink warns shipping companies would by lemonade outside Estonia in case of «sugar tax»

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Tallink ferry Baltic Princess

Estonian wholesaler Tallink Duty Free has stated that it will no longer buy soft drinks in Estonia if the country introduces the Riigikogu-backed «sugar tax».

The Estonian parliament adopted last month the law on the taxation of sweetened beverages according to which all sweetened drinks containing more than five grams of sugar per 100 ml would have to be taxed, with a the tax rate of a beverage with a sugar concentration of 5-8 grams per 100 ml – 10 cents per litre. The planned tax rate for beverages with more sugar is 30 euro cents.

ERR reports citing Estonian daily Postimees that after the country’s President Kersti Kaljulaid returned the law to the Riigikogu, stressing that the law would exempt drinks sold on board a ship or plane on international routes, which presented an unjustified advantage granted for one field, Tallink Duty Free’s director, Aimar Pärna, warned that companies would buy soft drinks elsewhere.

Accoring to Pärna, shipping companies normally buy their supplies in the country in their area with the lowest prices and taxes, so if soft drinks should now suddenly become a lot more expensive because of the sugar tax, companies would chose the cheapest option.

Ref: 111.111.111.4731


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