Finland Proposes Multi-Tiered Soft Drink Tax Reform to Encourage Healthier Choices and Increase Revenue

Expanded Tax Brackets for Soft Drinks

Under the proposed changes, the soft drink excise duty will expand from two to six brackets, ranging between €0.20 and €0.59 per liter, depending on sugar content. This tiered system is designed to incentivize low-sugar and sugar-free beverages, aligning with Finland’s broader public health goals.

Key Amendments

The proposal includes several targeted measures:

• Unpackaged drinks will be taxed at the lowest rate, irrespective of sugar content.
• Plant-based beverages will qualify for tax exemptions only if they meet minimum calcium content requirements.
• The soft drink tax will now cover retail water packages exceeding five liters and beverages derived from solid ingredients, determined by mixing ratios.
• Additionally, alcohol taxes will increase for fermented beverages containing 1.2–2.8% alcohol, effective April 1, 2026.

Effective Date

All amendments to soft drink and alcohol taxation will enter into force on April 1, 2026.

Why It Matters

The introduction of six sugar-based tax tiers marks a significant shift in Finland’s public health and fiscal strategy. These reforms are expected to influence beverage manufacturers and distributors, encouraging product reformulation, and the promotion of sugar-free alternatives. The changes also bring plant-based and large-volume water beverages into clearer regulatory focus, ensuring equitable tax treatment across product categories.

Who Is Affected

This update is relevant for regulatory affairs teams, QA departments, tax compliance officers, and product managers in beverage manufacturing and distribution. It also affects plant-based drink producers and low-alcohol beverage companies that may need to adjust formulations or reassess pricing strategies in line with the new taxation rules.

Next Steps

Companies should review current product formulations to determine which sugar-content bracket applies and whether plant-based beverages meet the required calcium thresholds for exemption. Pricing strategies should be updated to accommodate the revised tax rates for large water packages and low-alcohol fermented drinks before the April 2026 implementation.

As the Finnish government finalizes this reform, beverage manufacturers should proactively align with the updated framework to ensure full compliance and minimize operational disruption.

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FAQs

What are the new tax brackets for soft drinks in Finland?

The Finnish government proposes six tax brackets ranging from €0.20 to €0.59 per liter, determined by the sugar content of the beverage.

When will the new soft drink tax structure take effect?

The amendments will come into force on April 1, 2026.

Are plant-based beverages subject to the soft drink tax?

Yes. Plant-based beverages are included under the new regime but can qualify for tax exemptions if they meet minimum calcium content requirements.

How can RegASK help companies comply with these changes?

RegASK enables companies to track evolving excise duty regulations, analyze compliance gaps, and manage submission workflows through its AI-driven regulatory intelligence platform, ensuring smooth adaptation to new tax and formulation requirements.