Fizzy drinks sugar tax brings in €2m a month

THE sugar tax on fizzy drinks introduced in May is generating more than €2m a month, figures reveal.

The Exchequer benefited to the tune of €4.7m over May and June as sweet-toothed consumers continued to indulge their love of sugary drinks, the Irish

Independent has learned. However, the money is being directed into general funds and is not earmarked for any health services, despite calls for the tax to be used in the fight against obesity. It may raise nearly €30m annually.

In the UK, the proceeds of the tax are directly targeted at improving sport in schools.

The tax was introduced as a disincentive to consumers, particularly young people, to purchase sugary drinks.

One in four Irish children, who are the main target of the tax, is overweight or obese.

It has led to several soft drinks companies to reformulate their recipes to reduce the amount of sugar in their products.

The tax allows a levy of 16c per litre for drinks with between 5-8g of sugar per 100ml.

It rises to 24c per litre for varieties with more than 8g.

When VAT is included, this works out at 20c per litre for drinks with between 5-8g of sugar per 100ml, and 30c per litre for drinks with more than 8g of sugar per 100ml.

Consumers who are watching their calories should bear in mind, however, they will still contain more than one spoonful of sugar.