Excise tax on sweet carbonated drinks: will it be introduced in 2026?

The Ukrainian government is considering raising 8.5 billion hryvnias through a new excise tax on carbonated drinks, but the Verkhovna Rada currently lacks the votes to support it. This was reported by Roksolana Pidlasa, the head of the parliament’s budget committee.

Pidlasa noted that the situation with the votes in parliament makes it difficult to make this decision. The proposed excise tax will cover not only sweetened drinks, but also those that do not contain sugar.

“This excise tax will apply to drinks, including carbonated water without minerals, as well as sugar-free options such as Zero,” she added.

The official doubts that introducing an excise tax will significantly reduce the consumption of these drinks, since their prices will only rise. “I personally support this initiative, but I do not believe that people will start drinking sugary drinks less; their cost will simply increase,” she noted.

An important point is the administrative difficulties associated with implementing the excise tax, as the mechanism for its administration remains unclear. “It has not yet been determined how to administer this excise tax. If there are no clear mechanisms, then we are talking about standard administration, as in the case of excise stamps,” she emphasized.

Pidlasa also noted problems with controlling the activities of small producers of carbonated products, which could significantly complicate the effective implementation of the excise tax.

She expressed concern that the expected economic impact may be less significant than planned due to shortcomings in the collection’s organization. In the end, she concluded, noting that the specified amount of excise tax may be insignificant to the budget, while the risks of adverse consequences may be significant.