Finance Bill - Sugar Tax

Oct 23, 2017

The Bill provides more detail on the new tax known as the Sugar Sweetened Drinks (SSD) tax, which was announced in Budget 2017, and pledged in Budget 2018.

The SSD tax is due to be introduced from 1 April 2018; however, the measure is subject to approval by the European Commission and the minister’s commencement order.

The tax will be charged on the first supply of SSD in the State.  Suppliers of such drinks will be liable to register with Revenue in advance of their first supply to which the tax applies. 

Rate

Sugar content

€0.30 per litre

Drinks with a sugar

content of 8g or more

per 100ml

€0.20 per litre

Drinks with a sugar content of greater than 5g but less than 8g per 100ml.

 

The introduction of the SSD tax is intended to align with the proposed introduction of a similar regime in the UK, also from April next.  This alignment is to minimise any enticement for illegal and cross-border sales of SSD, and consequently any negative impact on the Exchequer revenues.