The European Dairy Association (EDA) is advocating that dairy products, including sugary drinks with added sugar, be exempt from sugar taxes in the European Union. "These products provide essential nutrients essential for a balanced diet for both children and adults and should remain affordable for all households," the organization states.
The EU is studying the possibility of a harmonised policy for taxing foods high in fat, sugar and salt, particularly sugary drinks.
A growing number of EU member states are imposing taxes on sweetened products and beverages to encourage healthier consumer choices, but the EDA is concerned that "drinkable dairy products are being unfairly targeted by these measures, despite their high nutritional value." "Lactose, the naturally occurring sugar in milk, is currently classified on nutrition labels as total sugar, alongside added and free sugars, even though it is not associated with adverse health effects," the EDA stated in a position paper. The EDA also believes that the dairy sector should be recognized in policy discussions for having already "taken significant steps to reduce added sugars in the supply."
In some countries, such as France, flavored milk drinks (with added sugar) are taxed the same as soft drinks and fruit juices, according to the organization. In Romania, according to the EDA, there's a sugar tax on all products containing more than 10% total sugars, including dairy products. In the Netherlands, drinkable dairy products have so far been exempt from the so-called consumption tax, but in April it was decided to remove the exemption for dairy drinks with added sugars (more on that later).
Member States must decide for themselves
According to the European Commission's final 2024 report on this topic, "Health taxes from an EU perspective," a European sugar tax on beverages should be differentiated based on sugar content. The researchers note that not all EU countries tax sugary dairy drinks and fruit juices because they also contain healthy nutrients, and "milk itself is considered part of a balanced diet, especially for children." Therefore, the researchers argue that the basis for including these products is weak and they should be excluded from a harmonized European sugar tax on beverages. It would then remain up to the Member States themselves to decide whether or not to tax them.
This conclusion of the European Commission report is welcomed by the EDA. The organization notes that its own 2020 survey showed that national dietary recommendations for dairy consumption (an average of 2 to 3 servings per day for adults and 3 to 4 for children) are not being met in 18 of the 23 European countries. The organization also notes that in the European Union, milk and dairy products are consistently classified as food under various regulatory frameworks.
Dutch situation
In the Netherlands, there has been a long-standing discussion about a sugar tax. There is a consumption tax on non-alcoholic beverages, which could be considered a kind of sugar tax. However, the same rate applies to all beverages covered; there is no differentiation based on sugar content. Moreover, it is a budgetary measure that is not directly aimed at promoting healthy behavior.
Dairy and soy drinks are exempt from this tax, and since 2024, mineral water has been as well. With the increase in the consumption tax from €1 to €2024 per 8,83 liters effective January 26,13, 100, several manufacturers started adding a "dairy touch" to make their drinks more affordable (such as DubbelFriss, Appelsientje, Coolbest, Taksi, and Rivella).
The April Spring Memorandum put an end to this loophole. This should be addressed in the 2026 Tax Plan, which will generate €36 million annually for the treasury. Not only juices with a small amount of added milk fat will then be subject to the consumption tax, but also dairy drinks with added sugars, such as yogurt drinks and chocolate milk. Only "pure" soy and dairy drinks, such as skimmed, semi-skimmed, and whole milk, will remain exempt from the tax.
The policymakers state: "Dairy and soy drinks contain important nutrients such as protein, calcium, and vitamins B2 and B12. Both (unsweetened, semi-skimmed, and low-fat) dairy and soy drinks with a maximum of 6 grams of sugar and enriched with calcium and vitamins B2 and B12 are included in the Nutrition Centre's Wheel of Five, which translates the scientific guidelines for a healthy and sustainable diet. The current design of the exception is in line with the milk fat content of drinks."
'Exemption for all dairy drinks not necessary'
According to the (now caretaker) cabinet, an exemption for all dairy and soy drinks is unnecessary from a health perspective "because the nutrients in these drinks can also be obtained by eating yogurt or cheese." "It also creates an uneven playing field with other drinks, and the exemption does not encourage citizens to eat more plant-based proteins, which are more sustainable than animal proteins," the Spring Memorandum states. Research is still underway to determine which dairy and soy drinks should remain exempt due to health risks.