The European Commission was assessing the measure's compatibility with competition legislation and announced this Tuesday that it had found it compliant with state aid rules.

"Soft drinks can be treated differently to other sugary products in view of health objectives," the Commission said in a statement. Soft drinks are the main source of calories devoid of any nutritional value and raise particular health issues such as a higher risk of obesity, which justifies an exception to the rule that EU member states must design taxes in a non-discriminatory manner, the Commission found. Its decision referenced World Health Organisation recommendations to limit the consumption of sugary drinks.

Dairy-based drinks

The tax was announced last October as part of Budget 2018. Soft drinks with 0.5g/l to 0.8g/l of sugar are liable to a 20c/l tax, while a rate of 30c/l applies to those over 8g/l. The tax does not apply to pure fruit juices or dairy-based drinks.

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