Sun. Dec 15th, 2019

The TSJC dumps the Catalan tax on sugary drinks

The Superior Court of Justice of Catalonia (TSJC) has admitted the use of various associations of distribution, trade and food against the decree of the Generalitat which included the regulation of tax about the sugary drinks -Refrescos, juices and isotonic among others-, declaring its nullity.

The judicial body attends to the demands of the large employers and understands that the administration dispensed with essential procedures for consultation, hearing and public information to approve the decree, especially in the case of a newly created tax, which is null and void. Before the sentence it fits.

Entered into force in May 2017

The tax has collected 64.6 million to date

According to the ruling, the TSJC fails to "estimate the contentious administrative appeal imposed against the decree approving the tax regulation on packaged sugary beverages, declaring its nullity."

Among those who submitted the resource are large employers of the affected sector, such as the National Association of Large Distribution Companies (ANGED), the Spanish Federation of Food and Beverage Industries (FIAB), the Spanish Association of Commercial Codification (AECOC) or the Business Association of restoration brands (PROMARCA).

On Monday, May 1, 2017, the tax came into force, which sought to discourage consumption, following recommendations from the World Health Organization (WHO). Thus, beverages that have between 5 and 8 grams per 100 milliliters are rated at 0.08 cents per liter; and those with more sugar will support a rate of 0.12 cents per liter. Between May and December 2017, it collected 22.7 million and in its first full year, in 2018, 41.9 million euros were collected.

The judgment also imposes the costs of the procedure on the public authorities.

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