Budget 2017: ‘Sugar tax will not tackle obesity rates’
Director Kevin McPartlan said the tax on sugar-sweetened drinks, to be introduced in April 2018, will be a “stealth tax dressed up as a public health issue”.
But the Irish Heart Foundation’s head of advocacy, Chris Macey, said postponing the tax was a bitter disappointment. He said it was a key commitment in the national obesity strategy.
“We have seen clear intention from the department of health [in tackling obesity] but it is not being felt across Government,” Mr Macey said.
Health organisations said a planned sugar-tax will be a small but significant step in tackling Ireland’s impending obesity.
The Irish Medical Organisation’s policy officer, Cian O’Dowd, said a 20% tax could potentially generate €200m while reducing obesity between 1.5% to 3%.
He said obesity remained a hugely pressing issue for Ireland which needed to be addressed as a priority by Government.
“We have to tackle problem areas, and sugar-sweetened drinks are one,” he said.
Finance Minister Michael Noonan confirmed that the Government proposed to introduce the tax in 2018. He said the levy will be in line with a similar new tax in Britain, as both soft-drink industries are heavily integrated.
Mr Noonan also announced a public consultation process will commence and run until January 3.
Meanwhile, the Irish Heart Foundation’s Mr Macey said funds generated from this tax were signalled, in the lead-in to the budget, to fund potential cuts to the USC.
He said it was crucial revenue collected from a sugar tax was ringfenced for combatting obesity.
“It’s not about generating revenue, it’s about protecting children’s health,” he added.
However, the Irish Beverage Council said €60 would most likely be added to an average consumer’s food bills annually as a result of the proposed tax.
Mr McPartlan also warned €60m could be lost annually by the soft drinks industry as the levy will encourage shoppers to seek cheaper alternatives.
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