Assobibe: ‘Sugar tax must be scrapped; 1 billion in investment on hold until 2027’

A tax that should be abolished. It hampers the sector’s growth, stifles investment and fails to alter trends in obesity or sugar consumption – which are cited as its objectives. Giangiacomo Pierini, president of Assobibe, the Confindustria association representing soft drinks manufacturers, has sounded the alarm. The tax in question is the sugar tax: ‘Since it was introduced in 2019 by the Conte 2 government, we have been going back and forth with announcements of its entry into force and suspension. It is now scheduled to come into effect in January; the implementing decrees are ready, and it could become operational immediately’. But for Pierini, it is a tax that severely penalises the sector, stifling growth and innovation. “Investments totalling 1 billion in machinery, processes and innovation – which could begin in 2027 but which companies are holding back whilst waiting to see what happens – would be lost if the tax were to go ahead. The sugar tax must be abolished once and for all.”

A request based on a series of considerations regarding the sector’s performance and the value it represents, its potential for growth, the revenue that would be generated by the tax, and the failure to meet the proposed targets. The sector employs around 84,000 people, including both direct and indirect workers, and generates a value of 5 billion, says Pierini. It is deeply rooted in the local area: 64 per cent of its members are SMEs, alongside a number of large multinationals. Over the last five years, there has been a 120 per cent increase in exports, continues the president of Assobibe. ‘We are small, but we are a strong standard-bearer for “Made in Italy”’, he adds, highlighting the sector’s close integration within the agricultural supply chain, through the purchase of raw materials – starting with fruit – and packaging materials.

Since the start of 2026, there has been a 3.7 per cent increase, driven mainly by the performance in June, July and August, which recorded a rise of 6.7 per cent. ‘A positive impact attributable to the performance of the tourism sector and the unseasonably long spell of hot weather.’ However, the figures could take a turn for the worse if the sugar tax were to come into force: the projected impact is an average increase of 28 per cent in the tax burden per litre of soft drink; there would be a 16 per cent annual reduction in business activity and sales over the two years following its introduction, says the president of Assobibe, with over 5,000 jobs at risk due to the fall in production and sales.

A major blow, therefore, with only a limited impact on the state’s coffers: “The estimated revenue,” says Pierini, “is 270 million. But this estimate does not take into account the shortfall in VAT revenue, amounting to 265 million euros. For the sector, it would be a very heavy blow, with no tangible benefits for the State’. Moreover, he adds, it would come at a time when companies are grappling with rising costs for energy, raw materials and transport: ‘our costs have skyrocketed’.

Furthermore, there is another aspect that Pierini highlights: companies’ commitment to health and reducing sugar intake to combat obesity. Sales of sugary drinks are falling steadily – down 27 per cent over the last ten years – companies have cut the sugar content in drinks by 44 per cent, and the sector accounts for 1 per cent of the total calories consumed in Italia. This has been achieved through investment and innovation – which the sugar tax would halt, thereby increasing costs for businesses. ‘We have signed numerous agreements with Health Ministers in recent years, the most recent one in August specifically to confirm and reinforce our commitment. Furthermore, we do not sell drinks in schools, nor do we carry out marketing or advertising activities in settings where children under the age of 13 are present.’