Catherine Noone (Fine Gael) | Oireachtas source

In 2015, the Royal College of Surgeons in Ireland indicated we are on track to be the most obese country in Europe by 2030. This is an issue I have raised on many occasions. In light of these warnings we need to introduce meaningful change. I welcome the fact the Government has indicated a willingness to introduce a sugar tax. I did research on our VAT system recently and was very taken aback to find out a bottle of water is taxed at the standard rate of VAT at 23% and chocolate milk, which I presume is classed as a milk product, which contains 18.8g of sugar per serving, is taxed at a zero rate of VAT. Food products such as Nutella spread, which is 50% sugar, is also taxed at a zero rate of VAT. A sugar tax needs to be fast-tracked but we have difficulties with regard to the UK and when and how we implement it. When we have such anomalies in our VAT system we should get them right first. To introduce a sugar tax before we get our VAT system right, when it comes to these glaring anomalies at the very least, seems to be absurd. Naturally healthy products such as bottled water should not be subject to the standard rate of VAT when products such as Nutella or chocolate milk have a zero rate of VAT. I call on the Minister to re-evaluate and reform the VAT rates. It is overdue that we have a review of the way in which we implement and put VAT on certain products.