Rising sugar tax revenue sees €32m raised in 2022

Provisional results show that more than €6m in tax revenue has already been collected in the first two months of 2023

Introduced in 2018, the sugar tax was implemented after years in the pipeline in an effort to curb rising obesity rates.

Government revenue raised by the Sugar Sweetened Drinks Tax (SSDT) rose by €1.6m last year, totalling €32m in 2022.

Last year's intake from the tax was the second highest since its introduction in 2018, with provisional figures from 2023 showing more than €6m has already been collected in the first two months of 2023.

Adding around 20c per litre, drinks with between 5g and 8g of sugar per 100ml raised €600,000 last year, while drinks with more than 8g of sugar with a 30c tax per litre generated €31.4m in revenue.

Last year's figures represent the first annual revenue increase since 2019, when a record €33m was collected.

Introduced in 2018, the sugar tax was implemented after years in the pipeline in an effort to curb rising obesity rates. According to the 2022 Healthy Ireland Survey, around 21% of Irish adults remain obese, with €1.13bn being spent annually to curb obesity costs.

A recent study by Red C Research also revealed that more than 60% of the country is classed as overweight or obese, despite more than 70% of people considering themselves to be healthy.

During parliamentary questions raised by Sinn Fein TD, Louise O'Reilly, Minister of Finance, Michael McGrath reported provisional figures for January and February of more than €6m, suggesting that tax revenue for 2023 is already on track to exceed last year's figures.