Home > Agriculture > Ireland wins EU OK to tax sugary drinks on health grounds

Ireland wins EU OK to tax sugary drinks on health grounds

Written by Business World, on 24th Apr 2018. Posted in Agriculture

article headline

Ireland gained EU approval on Tuesday for a tax on sugary drinks after regulators said the levy would help the country tackle health and obesity issues.

The ruling could help head off any challenges to taxes in other EU countries, including Britain, France, Hungary, which have also imposed some form of tax on drinks with added sugar to cut consumption for health reasons.

Britain imposed its new sugar tax on soft drinks earlier this month, and such measures appear to be growing in popularity with policy makers in other countries.

Such measures have the backing of the World Health Organisation, which in a 2016 study said obesity more than doubled worldwide between 1980 and 2014 to more than 500 million people. It said a 20% price hike could cut consumption by the same proportion.

The European Commission, which is in charge of ensuring a level playing in the 28 country EU, said the Irish tax does not constitute state aid.

"The measure's scope and design are consistent with the health objectives pursued by Ireland, namely tackling obesity and other sugar related diseases," the EU competition enforcer said in a statement.

It said soft drinks were a particular concern compared with other sweet products because they lacked nutritional value and were especially liable to over-consumption and considered to pose a greater risk of causing obesity. (Reuters)

Source: www.businessworld.ie

More articles from Agriculture

image Description

Land values rise 1.8% in the opening half of 2018

Read more
image Description

Hard Brexit poses challenges to Irish farming

Read more
image Description

8 Irish companies to take part in 2018 Coca-Cola/Enterprise Ireland Thrive Project

Read more
image Description

Cadbury owner stockpiles ingredients, chocolates and biscuits in case of a no-deal Brexit

Read more
image Description

Food & Drink Business Awards 2018

Read more