Three-quarters of soft drinks sold in Ireland not liable for sugar tax

Some 76 per cent of soft drinks sold in Ireland will not be liable for the new sugar tax, which will be introduced here on May 1st.

The Irish Beverage Council, a division of lobby group Ibec, said the fact that such a low volume of sales will be taxed under the new regime was down to the industry's "35-year journey to reduce sugar content in drinks".

"Soft-drinks companies were early movers in sugar reduction, beginning in 1983 when the first sugar-free carbonated drinks were introduced," Beverage Council director Colm Jordan said.

“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,” he said, noting that 10 billion calories have been removed annually between 2005 and 2012 from the national diet through a reduction in sugar content in soft drinks.

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From May 1st, drinks with between five and eight grams of sugar per 100ml will be subject to a tax of 20 cent per litre. Above eight grams, a levy of 30 cent a litre will apply. The Government has estimated that the sugar tax will yield about €40 million in a full year.

Mr Jordan said there was no “conclusive evidence” that the new tax would have an impact on obesity levels here.

“Wherever a tax has been introduced it has failed to tackle obesity. Notwithstanding this, we have co-operated fully with the design and implementation of the tax,” he said.