Dáil Éireann Debate, Wednesday - 24 June 2015
91. Deputy Peadar Tóibín asked the Minister for Finance the revenue that would be raised for the Exchequer by placing a tax on soft sugary drinks, as proposed by the Irish Heart Foundation, at the rates of 0.25%, 0.5%, 1%, 2%, 5% and 10%. [25263/15]
View answerIn their pre-Budget 2015 submission, the Irish Heart Foundation proposed introducing a tax on sugar-sweetened drinks which increases the prices of such products by at least 20%. This proposal left open the possibility of imposing such a tax as either an ad valorem tax, which would be imposed as a percentage of the final retail price (i.e. 10%), or a specific duty, which would be imposed as a specific amount per volume of sugar-sweetened liquid (i.e. €7.76 per hectolitre). However, the Deputy in his question seems to be suggesting an ad valorem tax.
There is no official data on the total sales revenue of sugar-sweetened drinks in Ireland. However, using data from the industry sources gives the following yield for rates of 0.25%, 0.5%, 1%, 2%, 5% and 10% on the final sales price of carbonated drinks (diet and non-diet), concentrates, & sports and energy drinks:
|
Rate |
0.25% |
0.50% |
1% |
2% |
5% |
10% |
|
Yield |
€2.5m |
€5m |
€10m |
€20m |
€49m |
€99m |
These figures assume no behavioural change as a result of a sugar-sweetened drinks tax. I would also point that an ad valorem tax of this type would be imposed at point of sale. Therefore, it would impose compliance costs on retailers and require additional Revenue resources.
