Government 'overestimated sugar tax yield'

The amount of money expected to be raised by an incoming sugar tax has been overestimated by almost €100m, according to reports in today's Sunday Business Post.

It is expected the incoming levy on sugary drinks will yield around €40m per year, rather than the €134m predicted in 2014,.

The Department of Finance's tax strategy group admit they relied on "imperfect" and "speculative approximations" in calculating that initial estimate.

It is also believed that soft drink manufacturers have altered their recipes to reduce sugar content and avoid the tax.


More in this Section

Drawing of lots sees Dublin miss out on European Banking Authority relocation

YO! Sushi eyes North American market with €66m takeover of Bento Sushi

Christmas spending in UK ’set to fall for the first time since 2012’ due to Brexit uncertainty

Ryanair announces 200 engineering jobs across Europe


Today's Stories

Ireland must forge even closer links with eurozone

Is this the end for zero-hour contracts?

The European Union seeks tax rule action

Despite the ticking clock, some optimism over sterling

Lifestyle

Making Cents: Black Friday is an opportunity - but be careful

Dishing out the chores

Quietly successful: Meet the man behind ECM Records

More From The Irish Examiner