David Cullinane (Waterford, Sinn Fein)
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276. To ask the Minister for Finance his views on the ring-fencing of the sugar tax to tackle obesity; and if he will make a statement on the matter. [15480/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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Hypothecation is not a feature of the Irish tax system in general. The Department of Finance is opposed to the hypothecation of Exchequer receipts as it reduces the flexibility of the Government to prioritise and allocate funds as necessary at a particular time. This constrains expenditure decisions and can distort the allocation of resources resulting in reduced value for money and sub-optimal outcomes.

An annual budget is allocated to the Department of Health as part of the estimates process and that is assigned according to the needs within that Department, including in relation to measures to tackle the problem of obesity.

Accordingly, I do not intend to hypothecate sugar-sweetened drinks tax receipts.