Paul Kehoe
Ceist:72. Deputy Paul Kehoe asked the Minister for Finance the basis for applying a tax and exemptions to products (details supplied); and if he will make a statement on the matter. [19556/18]
Amharc ar fhreagraThursday, 3 May 2018
Ceisteanna (72)
Freagraí scríofa
Sugar Sweetened Drinks Tax (SSDT) is provided for by Chapter 2 of Part 1 of the Finance Act 2017. The tax commenced on 1 May 2018 and applies to first supplies in the State of sugar sweetened drinks. Sugar sweetened drinks are water and juice based drinks, in ready to consume or concentrated form, that contain added sugar and have a total sugar content of 5 grams or more per 100 millilitres in their ready to consume form.
The tax applies on a volumetric basis at one of two rates, dependent on the total sugar content of the ready to consume form of the sugar sweetened drink. A rate of €16.26 per hectolitre applies to drinks with a total sugar content of 5 grams or more, but less than 8 grams, per 100 millilitres. A higher rate of €24.39 applies to drinks with a total sugar content of 8 grams or more per 100 millilitres.
A sugar sweetened drink contains added sugar if sugar is combined with other ingredients in its production or manufacture. If no sugar has been added, such as in the production of a pure fruit juice, then the drink does not contain added sugar and is not liable to SSDT. Where sugar has been added, the basis of assessment of the drink is the total sugar content of the drink in its ready to consume form. This means that a drink containing both naturally occurring and added sugar is assessed for the tax by reference to the total amount of sugar it contains in ready to consume form.
Where a sugar sweetened drink that contains added sugar is first supplied in the State in a concentrated form, such as a cordial or squash, the tax will apply if the total sugar content of the drink prepared from the concentrate is 5 grams or more per 100 millilitres.
Certain drinks, such as alcohol-free beers and wines, drinks based on soya, cereals, nuts or seeds, or drinks that contain milk fats and those labelled as food supplements, are excluded from the tax. In addition, any drinks excluded from EU food labelling obligations on the basis of their small scale production are not liable to the tax. For reasons of clarity, a legislative amendment will be brought forward in this year's Finance Bill to ensure that some of these exempt categories are exempt from the tax only where they deliver calcium levels comparable to dairy.
Comprehensive details regarding the operation of the tax are provided on the Revenue website at
https://www.revenue.ie/en/companies-and-charities/excise-and-licences/sugar-sweetened-drinks-tax/index.aspx .