Sugar tax scrapped in Catalonia

Sugar tax scrapped in Catalonia

A JUDGE has scrapped a tax on sugary drinks in Catalonia, saying that it is null and void because of insufficient consultation.

Several distribution associations, supermarket chains, shops and restaurants had come together to ask for a judicial review.

The High Court of Justice of Catalonia (TSJC) was told by the associations that there was an absence of public consultation and that the Catalan government had exceeded its powers of taxation.

They also considered that the tax is unconstitutional, discriminatory and arbitrary because it “produces extraterritorial effects outside the autonomous community, thus violating the unity of the market.”

But the ruling is not final, which means that the Catalan government can appeal. It had applied the controversial tax on sugary drinks in May 2017 to discourage consumption and raise revenue, a measure aimed at soft drinks, juices, sports energy drinks, milkshakes and flavoured waters, among others.