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Taxes applied exclusively to soft drinks have increased shelf price, greatly affected sales volume
The volume of soft drinks sold in the first quarter of 2024 decreased by 5% compared to the same period last year, as a result of the introduction of the excise duty applied exclusively to soft drinks with sugar content, the National Soft Drinks Association (ANBR) announced, which brings together the main profile producers in Romania.
This evolution is added to a 10% decline in volume recorded in 2023, compared to 2022, as an effect of the VAT increase from 9% to 19%, a measure applied at the time only for this category of products.
"All these discriminatory measures imposed on the soft drinks sector have led to price increases for the consumer implying a direct increase in the average price per liter on the shelf between 20-25% and up to 50% for drinks in packages over 2.5l. The direct increase of the price means +14 percentage points compared to the current average rate of inflation in Romania and +5 percentage points above the average rate of inflation in the food industry. the loss of jobs, the reduction of investments or their abandonment, all with major negative effects on the state budget and consumers, as well as a slowdown in the disinflation process, so important for Romania's economy at this time," the organization's press release states.
Among other negative consequences, ANBR lists the distortion of the natural commercial chain, by traders finding solutions to avoid paying taxes, either through illegal trade or by increasing trade with third countries, change of consumption habits, especially among young people, with the natural consequence that a part of consumers will move towards alcoholic products that will have a price similar to that of soft drinks and the decrease in the degree of voluntary compliance for an industry that at the moment is in the top of those with a very high collection rate of fees and taxes.
ANBR is a non-profit association, member of ROMALIMENTA (Employers' Federation of the Food Industry) and UNESDA (European Union of Associations of Soft Drink Producers).