A sugar tax of 30c a litre on beverages with more than 8g of sugar will be introduced in Ireland as of April 2018.
In his budget speech yesterday, minister for finance Paschal Donohoe announced the measures which will also add a charge of 20c per litre on drinks with 5-8g of sugar per 100ml.
The tax is aimed at reducing consumption of high-calorie drinks which are said to be contributing to high rates of obesity. Donohoe claimed that the tax rates are consistent with the sugar tax being introduced in the UK in April next year.
Irish health minister Simon Harris said he wants to see drinks companies change their products to make them with less or zero sugar.
Responding to the proposed sugar tax, the Irish Heart Foundation said it represents ‘a landmark day in the fight against obesity’.
Irish Heart head of advocacy said: “The introduction of a sugar sweetened drinks levy is probably the single most important action government can take to tackle Ireland’s obesity crisis.
“The minister’s announcement demonstrates a significant commitment on the part of government to meet its duty of care to protect the health of children in particular. We are also encouraged by indications that the measure is already proving effective by prompting beverage companies to reduce sugar content to ensure products fall below the threshold for the tax.”
A spokesperson for Britvic Ireland expressed disappointment at the move, stating that 75% of the company’s products are already low or no sugar.
Kevin Donnelly, the company’s managing director, said: “It is essential the department of finance and revenue engage with the industry to ensure that Republic of Ireland manufacturers, retailers, wholesalers, publicans and food service operators are not disadvantaged versus imported product, especially in an environment of weakening sterling.”
Last month The Irish Beverage Council (Ibev) published a statement in which it claimed the Irish exchequer will lose tens of millions of euros as a result of drinks smuggling across the border from Northern Ireland following the imposition of the tax.
It warned the Irish government that a combination of cross-border shopping, uncertain trade post-Brexit and the increasing cost of the weekly shop through new taxes threaten to facilitate a ‘perfect storm’.
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