The new sugar tax will be "all cost, no benefit" according to the Irish Beverage Council (IBC), the Ibec group that represents companies that produce, distribute and market soft drinks, juices, bottled waters and sports and energy drinks in Ireland,
The group have today published a new analysis of the impact of a possible sugar tax, which sets out the economic damage to consumers, business and the Irish economy that would result. It also examines the international evidence, which points to no resulting health benefits.
IBC points out that despite being introduced in a number of countries, sugar taxes have never achieved public health objectives of reducing the consumption of sugar or decreasing levels of obesity, overweight and related diseases.
However, the group claim the consequences of such additional discriminatory charges have instead increased grocery bills for families, spurred cross-border trade and smuggling, increased costs on businesses and threatened jobs.
The report finds that a 10c sugar tax on a can of soft drink would result in the average Irish household’s annual grocery bill increasing by €60, Irish soft drinks companies will lose sales worth approximately €60 million per year and the Irish exchequer will lose revenue of €35 million per year
IBC have urged the Minister for Finance not to introduce an additional charge on soft drinks that would achieve no public health benefit but will "cost consumers, business and the Irish economy."
IBC Director, Kevin McPartlan commented, "Industry has a crucial role to play in tackling the serious obesity problem in Ireland. However, it is vital that the focus is on interventions that make a genuine and sustained positive impact."
He added, "A sugar tax may be populist, but it is simply not supported by evidence. International experience proves beyond any doubt that sugar tax is singularly ineffective."
Source: www.businessworld.ie
