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Families could face shopping bill hike if sugar tax imposed

NewsBy Sunday World
Reports have claimed the tax will see an increase of 10c on the price of fizzy drinks.
Reports have claimed the tax will see an increase of 10c on the price of fizzy drinks.

Families could see increases of at least €60 a year to their shopping bills if a planned sugar tax is introduced, a report has claimed.

It has also been suggested that the tax, which has long been proposed by the government as one solution to tackling obesity, will do little to curb the problem. 

In a report published on Monday by the Irish Beverage Council (IBC), which acts on behalf of a number of companies that produce, distribute and market soft drinks, juices, bottled waters and sports and energy drinks in Ireland, the group claimed a planned 10c charge would not be effective.

Monday's report - 'Sugar Tax: All Cost, No Benefit'-  suggested the proposed charges could cost companies sales worth approximately €60m per year and ultimately lose €35m in revenue to the Exchequer.

The IBC argued that despite being introduced in a number of countries, sugar taxes had never achieved health objectives of reducing the consumption of sugar or decreasing levels of obesity and related diseases.

Speaking in relation to the report, IBC director Kevin McPartland told the Irish Independent: "Industry has a crucial role to play in tackling the serious obesity problem in Ireland. International experience proves beyond any doubt that sugar tax is singularly ineffective." 

The Department of Finance has previously estimated that the tax could yield up to €100m in extra revenue a year for the Government.