Dáil Éireann Debate, Tuesday - 17 January 2017
305. Deputy Joan Burton asked the Minister for Finance when he expects a new tax on sugar drinks will be introduced; the estimated annual yield from such a tax; the rate at which he expects the new tax should be set and the types of drinks included within its scope; the preparation currently being undertaken by his Department in this regard; and if he will make a statement on the matter. [1680/17]
Amharc ar fhreagraThe Programme for a Partnership Government commits to the introduction of a tax on sugar-sweetened drinks (SSDs). The tax will contribute towards important public health goals, as well as providing a new source of revenue for public spending. The Department of Health has also supported the introduction of a tax on SSDs in order to reduce added-sugar in diets, particularly the diets of children and young people. The proposed tax on SSDs is seen as just one measure in the Department of Health's comprehensive plan to tackle obesity in Ireland.
Sugar-sweetened drinks taxes have been introduced in a number of European countries in recent years. The UK is due to introduce a soft-drinks industry levy from April 2018. On Budget day I said that given the highly integrated production and supply chains which exist in the soft drinks industry between Ireland and the United Kingdom, it would be prudent to align the Irish sugar-sweetened drinks tax with the UK's tax proposal, in terms of time-frame and structure.
I also launched a public consultation process on Budget day to get the views of all stakeholders in order to ensure that, when introduced, the tax is as effective as possible, as fair as possible, and minimises the administrative burden on business. That public consultation period expired on 3 January 2017 and prompted 30 submissions from the health sector, the soft drinks industry and citizens. Officials from my Department and the Revenue Commissioners are currently collating and analysing the responses which will then be taken into consideration when developing the tax, including at which point in the supply chain these products will become liable for tax.
The estimated yield from the tax on SSDs will depend on the eventual design. The General Excises Tax Strategy Group (TSG) paper 2016 examines options around an SSD tax and potential estimated yields. Both the General Excises TSG paper and the Public Consultation paper are available on my Department's website.
Officials from my Department are engaged in ongoing communication with the soft drinks industry to ensure the tax, when introduced, is effective and implemented in an administratively straightforward manner. It is expected that the underpinning legislation will be introduced in this year's Finance Act.
