The Netherlands will raise the tax on most vegetable drinks by nearly 200% when equating them with soft drinks

The Dutch government has announced a significant increase in the consumption tax on soft drinks, including vegetable drinks, by 196% starting in 2024. This move has sparked concerns within the vegetable drink industry, as the majority of these products will be heavily taxed. Only soy and pea drinks will escape this new tax due to their higher protein content. This decision has been made amidst concerns about the health implications of milk alternatives, which are argued to have 'other ingredients' and lower protein content than cow's milk. This development has attracted attention to the ongoing tax disparities between vegetable drinks and milk in the European plant-based market, particularly in the Netherlands, which is one of the largest European markets for plant-based products. The government has stated that they are reviewing the categories affected by this measure, suggesting possible changes. This announcement has ignited discussions around the fairness of the new tax rates and the implications for the growing plant-based industry in the country.