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Italian Government Delays Sugar Tax to 2026 for Seventh Time

Resources are redirected toward reduced art VAT alongside a €40 childcare bonus for working mothers

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Overview

  • The council of ministers approved an Omnibus decree on June 20, 2025, deferring the sugar tax’s start date to January 1, 2026, marking its seventh postponement since 2020.
  • The delay is projected to cost approximately €140 million in lost revenue, potentially rising if further deferrals occur.
  • Lega and Forza Italia lawmakers argued the levy would burden families and small and medium-sized beverage producers, with industry groups like Assobibe and Federalimentare endorsing the decision.
  • The World Health Organization recommends sugar taxes to curb obesity and noncommunicable diseases, but evidence from the UK, Norway and Mexico shows mixed impacts on overall sugar intake.
  • Alongside the deferral, the decree cuts VAT on art sales to 5% and establishes a €40 monthly childcare bonus for working mothers, while also allocating funds for medical-device paybacks and infrastructure projects.