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.