Pearse Doherty
Question:156. Deputy Pearse Doherty asked the Minister for Finance the revenue that would be raised for the Exchequer if a junk tax was introduced. [54087/12]
View answerTuesday, 4 December 2012
Questions (156)
Written answers
The Deputy will be aware that the Minister for Health established a Special Action Group on Obesity (SAGO) to examine and progress a number of issues to address the problem of overweight and obesity, particularly in children. I understand that SAGO are calling for consideration to be given to taxation measures being applied to all foods and drinks high in fat and sugar. A detailed assessment would need to be carried out prior to the introduction of a junk tax or a more targeted tax on sugar sweetened drinks. This assessment would need to consider the possible impact a tax of this nature would have on employment, the less well off, cross border trading in the absence of a similar measure being introduced in the UK. In the absence of this assessment I am unable to advise the Deputy the revenue that would be raised for the Exchequer if one were to be introduced.
It should be noted, however, that the Danish Government has recently announced it is withdrawing the saturated fat tax it introduced in 2011, citing higher prices to consumers, higher administration costs, putting Danish jobs at risk, and an increase in cross-broder purchases as reasons for its withdrawal. It also said it intends to cancel the planned sugar tax.