From 1 January 2026, Lithuania introduces an excise tax on sugar-sweetened beverages, covering drinks with added sugar or sweeteners and directing the revenue to the State Defence Fund. Until 2026, no such tax applied to sugar-sweetened non-alcoholic beverages. Fiscal pressures linked to higher defence spending after 2022, together with rising childhood obesity and sugar intake, strengthened the case for reform. This also alligns with WHO recommendations, encouraging the use of fiscal measures to curb consumption of sugar.
The reform introduces a tiered excise on non-alcoholic beverages containing more than 2.5 g of added sugar per 100 ml or any sweeteners. Natural sugar drinks, infant formula, medical foods, drinkable dairy products and medications are exempt, while concentrates and syrups face higher rates. Three main bands apply: a lower rate for beverages with 2.5–7.9 g of added sugar per 100 ml or only sweeteners, a higher rate for beverages with at least 8 g, and a distinct rate for concentrates, reflecting their higher sugar density. This structure is expected to raise retail prices for high-sugar products and incentivize reformulation.
The process of policy implementation involved adopting the relevant legislation in June 2025, specifying taxable products, thresholds, exemptions and rates, effective 1 January 2026. This was accompanied by administrative rules and guidance for producers, importers and retailers on classification, reporting and control procedures.
Because the tax only enters into force in 2026, systematic evidence on behavioural, health and distributional effects is not yet available. Early commentary anticipates price increases of about €0.09–€0.25 per litre, product reformulation and reduced demand, but ex post evaluation will be required. Public health organizations broadly support the reform, while industry groups highlight possible impacts on competition and administrative costs.