Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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190. To ask the Minister for Finance the amount that a sugar tax of 10% would yield in 2018. [36334/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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It is my intention to introduce a tax on sugar-sweetened drinks in April 2018, to coincide with the introduction of a similar tax in the UK at that time.  This tax will be imposed as a volumetric tax as a specific amount per litre of product, as opposed to an ad valorem rate imposed on the final retail price of product. This is to ensure that the tax is applied to sugar content of the product regardless of the retail price.

The 2016 Tax Strategy papers estimated potential yields from a tax on sugar sweetened drinks based on total soft drink sales in Ireland of 685.4 million litres per annum.  The TSG papers estimated that the tax would apply to 60% of these sales.  Once introduced, it is expected that the tax will apply to much less than 60% of these sales as the soft drinks industry continue to reformulate their products, reducing sugar content.  Therefore, it is difficult to estimate exactly the tax yield.  However, it can be estimated that a tax on sugar sweetened beverages, levied at 10c on a 330ml can, would yield in the region of €40m in a full year.

I have not yet finalised the structure, scope or rate of the tax, so estimates are preliminary and subject to change.  It is expected that the underpinning legislation will be introduced in this year's Finance Act.