Sugar Tax 2018 – Bitter Sweet?

The EU Commission has cleared the way for Ireland to introduce a tax on sugar sweetened drinks. In October 2017 the government announced a proposal for a Sugar-Sweetened Drinks Tax (SSDT) to come into effect on 1 May 2018. The EU Commission has now concluded that the SSDT does not involve State aid, as it is consistent with the health objectives being pursued by Ireland (of tackling obesity) and will apply in a non-discriminatory manner.

Who does it affect?

Soft drink manufacturers will be taxed according to the volume of sugar-sweetened beverages they produce or import. A Sugar Sweetened Drinks Supplier (SSDS) is accountable under the VAT Acts and must pay the tax to the Revenue. Examples of companies that may be liable are wholesalers, distributors, retailers, producers, importers and companies making self-supplies, for example to employees. There's no indication yet if companies will pass on the increase to consumers or bear the brunt of the tax itself so that