Michael McGrath (Cork South Central, Fianna Fail)
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61. To ask the Minister for Finance the expected yield from the introduction of a 5% and a 10% tax on sugar sweetened drinks; and if he will make a statement on the matter. [33756/15]

Michael Noonan (Limerick City, Fine Gael)
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A tax on sugar sweetened drinks may be imposed as either an ad valorem tax, which would be imposed as a percentage of the final retail price (i.e 10%), or a specific duty, which would be imposed as a specific amount per volume of liquid (i.e €7.76 per hectolitre). The Deputy seems to be suggesting an ad valoremtax.

There is no official data on the total sales revenue of sugar-sweetened drinks in Ireland. However, using data from industry sources gives the following yield for rates of 5% and 10% on the final sales price of carbonated drinks (diet and non-diet), concentrates, and sports and energy drinks, assuming no behavioural change:

I would note that an ad valorem tax may be difficult to administer, given it would be imposed on the final retail price of the product, and thus liable to collection at the point of retail. I would also note that excise duties are traditionally imposed as specific duties, rather than as ad valorem taxes.