Lithuania has introduced an excise tax on sugar-sweetened beverages (SSBs), effective from 1 January 2026, marking a major step towards preventing avoidable disease and premature deaths linked to excess sugar consumption.
This means Lithuania joins a growing number of countries using fiscal policies to encourage healthier consumption patterns among their populations.
Why tax sugary drinks?
“Introducing a tax on sugar-sweetened beverages is an important measure our government is adopting to reduce the growing burden of chronic diseases. Overweight and obesity are growing in Lithuania – our children consume more than the recommended amount of sugar, which contributes significantly to the increase in chronic diseases. A sugar tax is an evidence-based measure that helps reduce the consumption of sweetened beverages. We cannot ignore the facts – action must be taken today if we want a healthier society in the future,” said Marija Jakubauskienė, Minister of Health of Lithuania.
SSBs provide no nutritional value and significantly contribute to excess sugar intake, weight gain and obesity. High consumption of sugary drinks has, moreover, been linked to heart disease, diabetes, stroke, obesity-related cancers and tooth decay; costing governments billions in health care.
Evidence has also identified health risks associated with long-term use of non-sugar sweeteners, which have been shown to increase the risk of diabetes, cardiovascular disease and early death. A well-designed taxation policy that increases price and incentivizes the industry to make their products healthier – sometimes referred to as product reformulation – could play an important role in improving diets within a wider package of population-level policies.
“Lithuania is taking a smart, evidence-based step to improve diets and reduce noncommunicable diseases. With dietary risks linked to a quarter of all deaths in Lithuania and more than 1 in 10 school children drinking sugar-sweetened drinks every day, measures that increase the price of high-sugar products and encourage reformulation can make a real difference,” said Dr Hans Henri P. Kluge, WHO Regional Director for Europe.
Lithuania’s steps to address the disease burden
In 2019, dietary risks, including high consumption of SSBs, alongside other factors such as low fruit and vegetable intake and elevated salt intake, accounted for approximately 25% of all deaths in Lithuania – compared to a European Union average of 17%.
Recent data further highlight the scale of exposure: 11.3% of Lithuanian school children in grades 5–9 consume SSBs every day, indicating early habitual intake. Moreover, statistics from the State Data Agency show that in 2024, sales of soft drinks – defined as waters with added sugar or other sweeteners and flavourings, including mineral and carbonated beverages – increased by 11%, reaching a total value of €29.3 million, underscoring the sustained growth of this product category on the Lithuanian market.
The new excise tax introduces a tiered system for beverages with added sugars or sweeteners.
Products with 2.5–7.9 g of added sugar per 100 ml or any amount of sweeteners, will be taxed at €7.4 per 100 litres, while those containing 8 g or more will face a rate of €21 per 100 litres.
Concentrated beverages will be taxed €105 per 100 litres in liquid form or €4.3 per kilogram otherwise. The measure excludes food supplements, foods for special medical purposes, infant and follow-on formula, pharmaceutical products, nectars with added sugar and drinkable dairy products.
A strategic step forward
Lithuania has long championed alcohol taxation policies.
By extending fiscal policy measures to non-alcoholic beverages, the country continues to champion evidence-based tools that protect public health. The next phase will require robust monitoring, data collection and enforcement, particularly in the face of anticipated commercial opposition.
“I congratulate Lithuania on its strong commitment to protecting population health through prevention, and I look forward to learning from the way this policy is implemented and monitored so the results can inform action across our Region,” said Dr Kluge.
“We want healthier choices to be the easiest choices. Today, many people choose products based on taste rather than health, and added sugars often drive these choices. A sugar tax encourages manufacturers to develop healthier alternatives and helps consumers to more clearly identify products that are truly worthy of a place in their daily diet,” concluded Minister Jakubauskienė.