Consumption of sugar sweetened drinks has reduced by at least a quarter since the introduction of a tax on the products in the State in 2018.
The Sugar Sweetened Drinks Tax (SSDT) was introduced as one of the measures intended to combat obesity.
The tax was levied on sugary drinks with more than five grammes of sugar per 100 millilitres. It was levied at an approximate rate of between €0.16 and €0.24 per litre at retail outlets.
Ireland became the 36th country in the world to introduce such a tax. Since then the number of countries that have introduced a similar tax has risen to 108.
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The introduction of the tax saw a dramatic fall in the amount of sugar intake via carbonated drinks between 2018 and 2019. It went from 24,151 tonnes of sugar being consumed from retail premises in the State in 2018 to 16,854 tonnes in 2019.
An evaluation of the impact of the tax in the State by the Munster Research Consultancy concluded the respective difference in the retail price between sugary and “low calorie” drinks was ”minimal” despite the tax.
The report concluded: “Although consumer preferences no doubt evolved over time to demand a healthier option, the SSDT can be credited with hastening the delivery of this reformulation.”
Minister for Health Stephen Donnelly said
the findings would help inform the development of future fiscal policies to support public health.
Minister for Finance Jack Chambers welcomed that the amount of tax revenue accruing from the measure has fallen since 2019 when it was €33 million to €29.3 million in 2023 despite significant inflation in between.
He said: “The findings support international research that fiscal measures are a viable policy option to change consumer behaviour, incentivise industry to reformulate and promote public health.
The Irish Heart Foundation called for a Government commitment to extend the sugar sweetened drinks tax now to all high-sugar foods.
“A broader sugar tax covering all the high-sugar products contributing to our obesity crisis would have an even bigger positive impact, saving many young people from a future dominated by chronic disease in advance of premature death,” said the charity’s director of advocacy, Chris Macey.
“Big policy responses such as this can no longer be avoided to tackle what is probably the biggest threat to our children’s future health. The State’s own research predicts that 85,000 of this generation of children on the island will die prematurely due overweight and obesity.”
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