Coca-Cola says that the rate on sugar is unconstitutional – Diário de Notícias – Lisbon

Company claims that the tax violates various european regulations and is discriminatory, since it favours national brands

The Coca-Cola says that the tax on drinks with high sugar content expected in the State Budget 2017 is discriminatory and unconstitutional and launched a publicity campaign against it.

The branch of the Portuguese of the trademark sent a letter to the parliamentary groups in which he claims that the application of the tax still represents a violation of the rules of the european internal market and of the General Agreement on Tariffs and Trade, according to the Public.

“it Is discriminatory in the sense that only reaches a specific type of products sugary, not by taxing such the sugar itself, all the products sugary or, at least, all sugary drinks,” reads the text of the multinational corporation.

The company also argues that it is the tax is “unconstitutional” because “the end is illegitimate,” and adds that “the reduction in the consumption of sugar can not justify, by itself, the approval of the tax, since that would violate the principle of private enterprise and the rights of consumers”.

The measure asks that beverages with high sugar content to pass to pay a new fee. For example, taking into consideration a can of Coca-Cola 330 milliliters, which has 35 grams of sugar, the tax will overtax the refrigerant in 16,46 cents per liter, about 5.5 cents per can

The “tax sugar”, as it has been called, violates even the General Agreement on Tariffs and Trade to demonstrate a certain inclination of protectionism on the productions and national brands, according to Coca-Cola.

The Coca-Cola understands that such tax is a State aid because “the fact that some sugary drinks and domestic production to be exempted can be understood as a form of favouritism to these brands and the companies that engage in this type of production, at the expense of producers of other non-alcoholic beverages”.

in addition, are put at risk, indirectly, the free movement of goods in the european space. “In Portugal, the intra-community acquisition of soft drinks are more representative than the acquisitions of other sugary drinks (production essentially national),” explains the brand. “The approval of a tax that is levied mainly on goods coming from other Member States can be assumed as a measure that impedes the access of foreign goods, assuming as a measure that is indirectly discriminatory on the freedom of movement of goods”.

There is still a restriction on the freedom of establishment and movement of capital. “The companies producing soft drinks, as well as their respective brands, are primarily held, directly or indirectly, by entities not resident in Portugal,” says the brand. “The financial return of the investment in the production and/or exploration of soft drink brands will be significantly reduced”.

This tax can represent a “constraint to the establishment of foreign entities in Portugal”.

The brand said to be willing to discuss alternatives, to be found a “more balanced and favorable to all parties involved: the State, the industry, distributors and consumers”.

In the advertising campaign launched by Coca-Cola directly against the tax the brand says it has released products “with less or no sugar”. “Why more taxes?”, question.

The letter in which the Coca-Cola asks the parliamentary groups to consider the measure was also sent to the ambassador of the United States, Robert Sherman, and the city of Setúbal, the city where Coca-Cola Portugal soft Drinks has a factory.

Are exempt from the tax based drinks, milk, soy or rice, juices and nectars from fruits and algae or vegetable juices, and drinks cereals, almond, cashew and hazelnut drinks are considered food for special dietary requirements or dietary supplements.