Ondřej Postránský, the CEO of Mattoni 1873, a renowned beverage company, has expressed his opposition to the proposed increase in value-added tax (VAT) on non-alcoholic drinks from 15% to 21%. Postránský argues that the government’s rationale for this tax increase, which is based on the use of single-use plastic packaging for non-alcoholic beverages, is flawed.

He points out that other food products are also packaged in single-use plastic, yet they are not subjected to a higher tax rate. Moreover, flavored mineral waters, which fall under the proposed VAT increase, contain significantly less sugar compared to many other sweetened foods that are taxed at a reduced rate.

The CEO emphasizes the potential negative impact of the VAT increase on consumers. Higher taxes on non-alcoholic drinks could limit access to these beverages for individuals who aim to responsibly enjoy a healthy and refreshing drinking regime. This is contradictory to the government’s goals of promoting a healthy lifestyle. Furthermore, reduced consumption of non-alcoholic drinks could also lead to lower VAT revenue.

Mattoni 1873 is actively addressing sustainability concerns by introducing its drinks in returnable packaging, such as glass bottles or KEG barrels. The company has been offering Mattoni mineral water in a recyclable glass bottle with a one-liter capacity since last year. Additionally, the Ministry of the Environment is preparing to implement a deposit system that will facilitate effective reuse of PET material from bottle to bottle.

Postránský believes that the core issue lies elsewhere and questions why all non-alcoholic beverages, defined by law as food, should be subjected to higher VAT rates. He sees no justification for discriminating against this particular category of food, especially considering that some non-alcoholic drinks are sold in slightly sweetened or sugar-free forms, while others are consumed naturally without added sugar.

Article by Prague Forum