Tuesday, 27 February 2018

Questions (162, 163, 164)

Billy Kelleher

Question:

162. Deputy Billy Kelleher asked the Minister for Finance the introduction date for the sugar sweetened drink tax; and if he will make a statement on the matter. [9461/18]

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Billy Kelleher

Question:

163. Deputy Billy Kelleher asked the Minister for Finance the estimated revenue per annum from the sugar sweetened drink tax from 2018 to 2021; and if he will make a statement on the matter. [9462/18]

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Billy Kelleher

Question:

164. Deputy Billy Kelleher asked the Minister for Finance if consideration has been given to ring-fencing revenue from the sugar sweetened drink tax specifically for an obesity prevention fund; and if he will make a statement on the matter. [9463/18]

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Written answers (Question to Finance)

I propose to take Questions Nos. 162 to 164, inclusive, together.

It is my intention to introduce the Sugar Sweetened Drinks Tax on 6 April 2018 which coincides with the introduction of a similar tax being introduced in the UK on that date.

The estimated yield for 2018 is in the region of €30m with the yield for 2019 and subsequent years €40m per annum. The yield could potentially decrease over time as consumers opt for cheaper non-tax products combined with continued industry reformulation.

Hypothecation is not a feature of the Irish tax system in general. The Department of Finance is opposed to the hypothecation of revenue funds as it reduces the flexibility of the Government to prioritise and allocate funds as necessary at a particular time.

An annual budget is allocated to the Department of Health as part of the estimates process and that is assigned according to the needs within that Department, including in relation to measures to tackle the problem of obesity.