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Sugar Sweetened Drinks Tax (SSDT)

Dublin, Ireland

Thematic area

Marketing and Regulation, Prices, Affordability

Policy scope

National

Target audience

Citizens/Consumers

Status

Ongoing

Aim and method

The high rates of overweight and obesity (almost 60% of the adult population and 1in 5 primary school children) are increasing the risk of developing type 2 diabetes, non-communicable diseases and cancer. To protect Ireland’s citizens, the Obesity Policy and Action Plan was introduced. It aims to address obesity through a range of actions from health promotion and education, to regulatory measures including the Sugar Sweetened Drinks Tax (SSDT) and through supporting services to manage and treat obesity in our health services.

Background

After the announcement of the Obesity Policy and Action Plan in 2016, and many technical consultations with officials from the Department of Finance and the Revenue Commissioners and representatives from the soft drinks industry, the SSDT was introduced in May 2018, with a slight delay as a similar tax being introduced across the UK. Since January 2019, SSDT also applies to certain categories of plant protein drinks and drinks containing milk fats.

Monitoring and ownership

The Department of Health is responsible for monitoring Ireland's Obesity Policy and Action Plan. The SSDT was introduced under the Finance Acts, thus both the Department of Finance is also involved. The tax itself is administered by the Office of the Revenue Commissioners.

Implementation and Results

The Department of Health commissioned an independent evaluation of the SSDT. The tax operates as an excise duty and is administered on a self-assessment basis. Suppliers are required to register with Revenue in advance of making the first supplies of sugar-sweetened drinks in the State. Evidence shows that there is a fall in sugar consumption via carbonated drinks after the introduction of the tax, before levelling off in 2022, and that there has been significant product reformulation by the soft drinks industry.