Pearse Doherty
Ceist:240. Deputy Pearse Doherty asked the Minister for Finance the estimated budgetary implications of the delay in introducing the sugar tax; and if he will make a statement on the matter. [15459/18]
Amharc ar fhreagraTuesday, 17 April 2018
Ceisteanna (240, 251)
Kevin O'Keeffe
Ceist:251. Deputy Kevin O'Keeffe asked the Minister for Finance when he plans to introduce the sugar tax as agreed in budget 2018; his views on the fact that this delay is now causing administrative and logistical problems for many companies; and if he will make a statement on the matter. [15829/18]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 240 and 251 together.
Ireland has 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. Following these constructive discussions with, and a formal notification to, the European Commission, a positive decision is expected very soon to allow for the commencement of the tax on 1 May 2018.
While any inconvenience caused by the short delay to the commencement is regrettable, this was unavoidable. The sugar-sweetened drinks tax is the first of its kind to be reviewed by the European Commission and will provide a benchmark for State aid decisions in this area. Key stakeholders were informed of the delay as soon as it became apparent that the Commission decision would not be communicated within the anticipated timeframe.
The estimated yield for 2018 is in the region of €30m with the yield for 2019 and subsequent years €40m per annum. On a straight line basis the estimated cost of delaying the introduction from 6 April to 1 May is estimated to be in the region of €2.5m.
The yield could potentially decrease over time as consumers opt for cheaper non-tax products combined with continued industry reformulation.