Which Countries Have Passed Taxes on Sugary Drinks?

Meta description: See which countries tax soda and other sugary drinks, how these policies work, and why tax rates, coverage, and results differ.

Taxes on soda and other sugary drinks are now used in many parts of the world, but they do not all work the same way. Some charge a fixed amount per liter; others tax drinks according to sugar content or apply a broader levy to sweetened beverages. The World Health Organization (WHO) has reported that more than 100 countries tax at least some sugar-sweetened beverages, though the products covered and tax designs vary. The examples below show where national taxes have been adopted and how to interpret the term “soda tax.”

The following examples are not an exhaustive global inventory. Tax rules change, and countries sometimes revise rates or product definitions. The WHO’s global reporting is a useful reference for the broader picture; individual governments’ tax authorities provide the current legal details.

Examples From the Americas

Mexico

Mexico introduced a national excise tax on sugary drinks in 2014. The policy applies to many non-alcoholic beverages with added sugars and is commonly described as a per-liter tax. Mexico’s measure is among the most frequently studied soda taxes because it covers a large population and has been evaluated using household purchasing data.

Research published in peer-reviewed journals found that purchases of taxed beverages declined after implementation, with larger reductions reported among lower-income households. Such studies track purchasing patterns, not every individual’s consumption or long-term health outcomes. They also cannot by themselves establish that the tax caused every observed change.

Barbados

Barbados introduced a 10% excise tax on sugar-sweetened beverages in 2015. The measure was later repealed and replaced with a higher rate, so descriptions of the policy should be checked against the relevant date. Barbados illustrates why an article or data table should distinguish a tax’s original rate from its current or subsequent design.

Colombia

Colombia adopted taxes on sugary drinks and certain ultra-processed foods through a 2022 tax reform, with the beverage tax beginning in 2023. Its rates are structured to rise over time, with the schedule tied to sugar content and product categories. As with other policies, product definitions and subsequent legal changes can affect which drinks are covered.

European Taxes and Levies

United Kingdom

The United Kingdom’s Soft Drinks Industry Levy took effect in 2018. It generally applies to manufacturers and importers, with different rate bands for drinks according to their sugar content. Because a company can avoid or reduce the levy by lowering sugar levels, the policy creates an incentive to reformulate products as well as a reason for consumers to choose less-sugary options.

The levy covers England, Scotland, Wales, and Northern Ireland under the relevant UK-wide arrangements, though related public-health policies can differ across the nations. It is not simply a charge added at the checkout to every can of soda; the levy is collected from producers and importers, and its effect on retail prices depends on how businesses respond.

France, Ireland, Portugal, and Poland

France introduced a tax on sweetened drinks in 2012 and has adjusted its design over time, including changes intended to better reflect sugar content. Ireland’s Sugar-Sweetened Drinks Tax began in 2018 and uses sugar thresholds and rate bands. Portugal’s tax, also introduced in 2017, differentiates rates according to sugar concentration. Poland’s 2021 beverage fee combines sugar-related charges with other rules, including provisions for some drinks containing added sweeteners or caffeine.

Other European approaches

Belgium and Hungary have adopted national measures that can affect sweetened beverages, although their policies sit within broader tax systems. Hungary’s Public Health Product Tax, introduced in 2011, applies to a range of products selected for public-health reasons, including certain sugary drinks. Finland has also used excise taxation on soft drinks. These examples are not identical to a dedicated, sugar-per-liter soda tax.

Some European policies have ended or changed. Norway, for example, had taxes on non-alcoholic beverages but removed its beverage tax in 2021. Denmark’s former soft-drink tax was abolished earlier. Historical lists that include these countries may therefore describe past, rather than current, policy.

Taxes in the Middle East and Asia-Pacific

Saudi Arabia and the United Arab Emirates

Saudi Arabia and the United Arab Emirates introduced excise-tax systems in 2017. Their rules have included sweetened beverages, alongside other product categories such as tobacco and energy drinks. The tax structure and definitions have been revised over time, so current rates should be checked with each country’s tax authority rather than inferred from the original launch date.

Thailand and the Philippines

Thailand phased in an excise-tax structure for beverages based in part on sugar content, beginning in 2017. The schedule was designed to give producers time to adapt and reduce sugar levels. The Philippines introduced an excise tax on sweetened beverages in 2018. Its law distinguishes among sweeteners and product types, with exemptions or special treatment for some categories.

Other regional examples

Brunei has applied an excise duty to sweetened beverages, and several island nations have adopted beverage taxes as part of public-health or revenue policies. The details differ considerably, particularly on whether the tax covers imported drinks, concentrates, artificially sweetened beverages, or only products containing added sugar.

Regional and Local Taxes Are Not National Taxes

A country may have a soda tax in one state, province, city, or region without having a nationwide tax. Spain is one example: Catalonia introduced a tax on sweetened beverages in 2017. In the United States, several cities—including Berkeley, Philadelphia, and Seattle—have adopted local taxes, but the U.S. does not have a federal tax on sugary drinks.

This distinction is important when comparing countries. A list that combines national and city-level taxes can make coverage seem broader than it is. It can also obscure differences in tax rates, exemptions, enforcement, and the number of residents affected.

How Soda Taxes Are Designed

Governments generally choose among a few tax structures:

• Volume-based tax: Charges a fixed amount per liter or other volume, regardless of the exact sugar concentration.
• Sugar-content tax: Sets the rate according to grams of sugar per 100 milliliters or per liter.
• Threshold or tiered levy: Applies different rates above specified sugar levels, which may encourage manufacturers to reformulate.
• Ad valorem tax: Calculates the charge as a percentage of a product’s value, rather than a fixed volume or sugar amount.

Each design has trade-offs. A volume-based tax is relatively straightforward to administer, while sugar-based tiers more directly reward lower-sugar formulations. An ad valorem tax can vary with price and may not provide the same incentive to reduce sugar content. Exemptions and enforcement rules also shape a policy’s impact.

Why Governments Tax Sugary Drinks

Public-health agencies cite high consumption of added sugars as one factor associated with weight gain, type 2 diabetes, and tooth decay. Sugary drinks can contribute substantial added sugar while offering limited nutritional value. A tax is intended to raise the relative price of these products and may encourage consumers to switch to water or lower-sugar drinks.

Taxes can also motivate manufacturers to reduce sugar, alter package sizes, or change product lines. Where revenue is earmarked, governments may direct funds toward health programs, clean-water access, or other public services. Earmarking varies by jurisdiction; revenue is not automatically spent on health care simply because a tax is described as a public-health measure.

What the Evidence Says

Evaluations in places such as Mexico, the United Kingdom, and South Africa have documented changes in purchases, product sugar levels, or both after taxes took effect. The UK levy, in particular, was followed by substantial reformulation by many manufacturers, consistent with its tiered design. Mexico studies have found reduced purchases of taxed beverages, with effects varying across population groups and over time.

These findings should be interpreted carefully. A reduction in purchases does not necessarily equal an identical reduction in consumption, and health effects can take years to measure. Results depend on the tax size, how much reaches shelf prices, availability of alternatives, consumer habits, and whether people substitute other high-calorie products. Taxes are one policy tool, not a standalone solution to diet-related disease.

How to Check Whether a Country Currently Taxes Soda

For a reliable country-by-country answer, check the latest information from the national finance ministry, customs or tax authority, and health ministry. The WHO’s resources on fiscal policies for diet and noncommunicable disease prevention provide a useful international overview, but legal rates and product lists can change after publication.

Before treating a country as having a current soda tax, verify four details: the effective date, the geographic scope, the beverages covered, and whether the tax remains in force. That approach avoids confusing a proposed measure with an enacted one, a city tax with a national policy, or an old rate with the current law.

Sources and Further Reading

• World Health Organization, Healthy Diet and fiscal policy resources
• WHO, Taxes on Sugar-Sweetened Beverages: Summary of International Evidence and Practical Guidance
• UK Government, Soft Drinks Industry Levy guidance
• South African Government information on the Health Promotion Levy
• Philippines Department of Finance information on excise taxes