Labour plans sugary drink tax and higher tobacco price

A new sugary drinks tax, further bank levies, and more tax on tobacco will help bring in an extra €1bn as part of proposals to spend €11bn over the next five years, Labour has said.

A 50c extra charge on a soft drink can and a 40c increase in the cost of tobacco for consumers are some of the measures proposed to boost spending, the party said. Labour yesterday launched its economic plan, which includes a promise to abolish USC on incomes up to €72,000 and claw back benefits from those earning over €100,000 a year.

While the tax proposals were flagged last week, the junior coalition partner now proposes being able to have as much as €11.2bn in “fiscal space” to spend if returned to government.