Will the Government’s proposal of a sugar tax work?
No. Ireland has a serious problem with obesity so we need serious proposals for solutions, not soundbites and populist posturing. A sugar tax will damage Irish businesses, cost the average household €60 per year and sets a dangerous precedent of discriminatory taxes on particular food and drinks.
Why do you believe a sugar tax will not help tackle obesity?
Sugar taxes have proven to be ineffective as an anti-obesity measure. For example, in Mexico, sales of soft drinks now exceed pre-tax levels.
What could be the alternative to a sugar tax?
Food companies are changing their recipes to reduce fat, saturated fat and sugar. Between 2005 and 2012 the industry removed more than 2,500t of sugar – 10bn calories – from the Irish national diet by reducing sugar in its products and introducing new low- and no-calorie drinks. It is committed to continuing this.
What is the impact to Irish soft drinks companies if such a tax was introduced?
While we know that consumption of soft drinks will not suffer any sustained drop-off as a result of a sugar tax, our members stand to lose sales worth about €60m per year. People will still consume the same quantity of soft drinks, but will find cheaper ways to buy them – maybe through bulk purchase, switching from branded product to supermarket own-label, buying from discount retailers rather than their local shop or crossing the border to avail of lower prices.
What are the annual sales of soft drinks in Ireland?
The value of soft drinks sold in Ireland each year is about €1bn.
Would a sugar tax have any implications for any dairy-based beverages?
Nothing in the Irish proposals refers to dairy products, but we know that in the UK there have been efforts to include some dairy drinks in the scope of the sugar tax. I do see sugar tax on soft drinks as the thin end of the discriminatory taxation wedge. If it is introduced, I am certain there will be pressure to extend into other types of food and drink.
Do you think an initial tax on soft drinks will evolve to other food further down the line?
I am certain of it. If the Government successfully establishes the principle of discriminatory taxation on one category of food and drink, then it will consider others to be fair game. I can only guess what would come next. Chocolate, bread, cheese, red meat?



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