Sugar Tax introduced nationwide from today in battle against childhood obesity

By Kim O'Leary

Ireland’s Sugar Tax is now in effect today after several years of talks, and the new sugar tax is expected to impact soft drinks the most with those consisting of between 5 and 8 grams of sugar per 100ml to be subject to a tax of 20 cent per litre and those with above 8 grams will incur a levy of 30 cent per litre.

This means that many cans of sweetened drinks will go up by 10 cent per can and by 60 cent for a 2 litre bottle.

It is understood that the drinks affected by the new sugar tax will include some flavoured waters, carbonated waters, energy and sport drinks, and juice-based drinks. Meanwhile, some concentrated producst which require the addition of water before consumption such as flavoured syrups, cordials and bottled squashes.

However, fruit juices will not cost more unless sugar is added, pushing the entire sugar content above the threshold. International soft drink brands such as Coca-Cola Classic, Pepsi, Club Orange, Red Bull and Monster will all cost more, although diet and low sugar versions will be unaffected.

Dairy products are outside the scope of the tax on the basis of the nutritional value they offer, such as calcium and protein which are necessary for good health.

Meanwhile,  The Irish Heart Foundation, which campaigned for the new tax, said in a statement that today was the "most significant day yet in the fight against childhood obesity" in Ireland. The foundation's head of advocacy Chris Macey said the measure was the first signal that the Government was prepared to take tough action to tackle the crisis and the decision had already paid off due to a major programme of reformulation by manufacturers to reduce sugar levels below the thresholds chosen for the tax.

Mr Macey said that the decision to introduce this new tax had already paid off due to a major programme of reformulation by manufacturers to reduce sugar levels below the thresholds chosen for the tax.

According to Mr Macey: “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."

“These will inevitably include a ban on junk food marketing to children, the development of nutrition standards to protect students from a growing proliferation of unhealthy food provision within and in the vicinity of second level schools and a major programme to increase accessibility of healthy food within disadvantaged areas," added Mr Macey.

Meanwhile,The Department of Finance, Public Expenditure and Reform estimates it will raise €40 million in a full year, but as drinks manufacturers work to reduce sugar content the figure will fall.

The Irish Beverage Council, which represents soft drinks companies, opposed the introduction of the tax, but has accepted that it is now a reality. The council claims that 76% of soft drinks sold in Ireland will not be liable for the tax as companies have been working to reduce sugar for more than 30 years.

For more information visit https://irishheart.ie/ or https://www.revenue.ie/en/companies-and-charities/excise-and-licences/excise-duty-rates/sugar-sweetened-drinks-tax.aspx