Estonia, Foodstuff, Legislation, Markets and Companies, Transport

"I am in favor of the goal set with the so-called sugar tax to guide the people of Estonia and first and foremost children and the youth to consume less sugar and thereby decrease the health damages caused by excessive consumption of sugar," Kaljulaid said in a press release.

"Nevertheless, I will hereby leave the sugar tax law unproclaimed as my standpoint is that it is not in accordance with the principle of equal treatment set out in the 12th paragraph of the Constitution," the president said.

"According to paragraph 10 clause 8 of the sweetened drinks tax law, the law exempts from tax those sweetened drinks, which are transported to be sold on board a ship or plane carrying out international journeys. With this kind of regulation, the legislative authority is handing an unbased advantage to one sector and it is not consistent with the principle of equal treatment set out in the Constitution," the head of state said.

The Estonian parliament on Jun. 19 approved a law on the taxation of sweetened beverages, according to which all sweetened drinks containing more than 5 grams of sugar per 100 milliliters will be taxed. The parliament then sent the law to the president to be promulgated. The head of state had until Jul. 3 to proclaim the law.

A total of 52 MPs were in favor of the act, 37 were against it and there were no abstentions.

The tax rate for a beverage with a sugar concentration of 5-8 grams per 100 milliliters is 10 cents per liter. The tax rate for drinks with a higher sugar content is 30 cents.

The Food Industry Association, the Chamber of Agriculture and Commerce and the Chamber of Commerce and Industry sent a letter to the president , asking her not to promulgate the law as unconstitutional and processed in neglect of good legislative practice.

The listed shipper Tallink Grupp AS was given the right to sell sweetened drinks on its ships also in the future without paying additional tax. The amendment was backed by 62 MPs and opposed by 21 MPs, while no MPs remained impartial.

The clause was added to the bill at the proposal of the parliament's finance committee. The shipper presented to the committee its position regarding the tax on sweetened drinks on May 23, in which the company described how the tax would affect the shipping industry and asked for an exemption.