Marketing

Sugar tax postponed to 1st May

The Department of Finance has postponed the introduction of the Sugar Tax on soft drinks from 6th April to 1st of May 2018 “to allow for completion of the necessary administrative processes in relation to State aid approval”.

Having engaged in “extensive and constructive Discussions” with the European Commission to ensure that once commenced, the Sugar Sweetened Drinks Tax does not infringe EU State aid law, the sugar-sweetened drinks tax has become the first of its kind to be reviewed by the EC and will provide a benchmark for State aid decisions in this area, according to the Department.

Key stakeholders have already been informed of this development.

A Healthy Ireland Survey last year found that nearly one in six  people (16%) drank sugar-sweetened drinks on a daily basis and 38% did so at least once a week.

Despite this postponement, it’s understood that the introduction of the Soft Drinks Industry Levy in the UK is to go ahead as planned on April 6th .

The World Health Organisation recommend limiting consumption of sugar sweetened drinks as part of a strategy to tackle obesity.

This tax is one of a suite of measures being implemented as part of an overarching policy framework to address this issue of obesity. The introduction of this tax on sugar-sweetened drinks aims to reduce consumption by incentivising individuals to opt for healthier drinks in tandem with providing motivation for the soft drinks industry to reformulate by reducing added sugar content and delivering healthier products.

 

 

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