Ireland’s sugar tax begins today as industry plays down its impact

Ireland’s tax on sugar-sweetened beverages has come into effect today, as the government aims to tackle obesity in the country.

The levy was originally planned to be introduced last month but it was required to receive state aid approval from the European Union, which it obtained last week.

A levy of €0.16 a litre has been put in place for drinks with between 5g and 8g of sugar per 100ml. It will rise to €0.24 a litre for varieties with more than 8g of sugar.

The Irish government expects that the levy will generate €30 million in 2018 and €40 million in a full year.

The Irish Beverage Council (IBC), a group which represents soft drinks companies, claimed that “three-quarters of soft drinks sold in Ireland are sugar tax free” due to the industry’s prior efforts to reduce sugar content in drinks.

IBC director Colm Jordan said: “Soft drinks companies were early movers in sugar reduction, beginning in 1983 when the first sugar-free carbonated drinks were introduced. Since the 1990s, the number of no-sugar drinks has increased substantially. Consumers want to manage their sugar intake and that is why the industry is investing in innovative new products to match evolving tastes.

“We accept the government’s sincerity in addressing the complex issue of obesity, and are committed to working on shared solutions that deliver real public health benefits. 76% of soft drinks are now sugar tax free.

“In Ireland, 10 billion calories have been removed annually between 2005 and 2012 through voluntary sugar reduction in soft drinks. That is a 10% reduction in seven years. Today, soft drinks represent less than 3% of Ireland’s calorific intake.”

Meanwhile, the Irish Heart Foundation (IHF) said today marks “the most significant day” to date in the fight against childhood obesity in Ireland.

Is has reiterated calls for a portion of the proceeds to be ring-fenced to fund measures to prevent childhood obesity, as is the case in the UK.

IHF head of advocacy Chris Macey said: “This move demonstrates a significant commitment on the part of government to meet its duty of care to protect children in particular from this mortal threat to their health.

“State funded research estimates that 85,000 of today’s children on the island of Ireland will die prematurely and many more hard decisions will be required if we are going to change their future.”

He added: “If, as has been stated, the tax is being implemented purely as a health measure, then surely the proceeds should be deployed in the fight against obesity, as has been the case with the tax in the UK which was introduced last month.”