THE GOVERNMENT HOPES to take in around €27 million this year alone from the new sugar tax.
The tax kicked in on 1 May after the European Commission approved the much-discussed sugar tax.
An additional 30 cent per litre has been added on to sweetened drinks with over eight grams of sugar per 100 millilitres. This has resulted in many drinks such as Coke, 7UP, Pepsi, Monster and Red Bull going up in price by the full 30 cent per litre.
A can of Coke, which has the sugar content of 39 grammes, has gone up by 10 cent under the new tax.
Finance Minister Paschal Donohoe has said while it is “extremely difficult” to estimate the potential revenue generated for the Exchequer from the sugar tax due.
This is due to the industry reformulating some of their drinks to reduce sugar levels in some of their products, he said.
However, it is estimated that the tax will yield in the region of €27 million in 2018, said the minister.
Donohoe said it is estimated that around €40 million will be generated in a full year from the new tax.
“It is hoped that the tax will help tackle obesity by providing incentives to reduce the sugar content in relevant products, and ultimately to reduce sugar consumption by citizens. Therefore revenues generated from this tax may decrease over time,” he said.
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