President Vetoes Amendment to Poland’s Sugar Tax Law

President of Poland Karol Nawrocki has vetoed legislation amending the Act on Public Health and the Personal Income Tax Act, which would have led to a substantial increase in the sugar tax. The bill, adopted by both chambers of parliament, proposed a sharp rise in the existing levy on sugar-sweetened beverages.

The sugar tax was introduced in Poland in 2021 with the declared aim of reducing excessive sugar consumption and supporting public health efforts. The vetoed amendment focused primarily on a radical increase in tax rates, without introducing additional mechanisms that would demonstrably support broader public health objectives.

AmCham Poland supports the President’s decision, which is consistent with the key arguments underpinning our advocacy efforts.

We have consistently emphasized that while public health and reducing excessive sugar consumption are important policy priorities, further sharp increases to the sugar tax are unlikely to deliver proportional health benefits. At the same time, such measures risk generating negative economic consequences, particularly for employment and business stability.

Our position has highlighted that revenue projections related to the sugar tax do not sufficiently take into account declines in output, employment, and tax revenues from other sources. The proposed increase risked exacerbating these trends, with additional pressure on micro- and small enterprises involved in beverage retail, as well as on domestic agri-food producers whose perspectives were not adequately reflected during the legislative process.

We have also pointed out that Poland already applies one of the highest sugar tax rates in Europe. Further increases could place Poland at the top of EU rankings both in nominal terms and when adjusted for purchasing power, raising concerns about regulatory stability, predictability, and the overall business environment.

AmCham Poland remains committed to constructive dialogue and to supporting solutions that effectively address public health challenges without undermining jobs, economic resilience, and regulatory predictability for producers and the wider market, particularly when changes are introduced with very limited adjustment periods.