Failure to ring-fence sugar tax criticised
THE failure to ring-fence revenue collected from the sugar tax on fizzy drinks for health measures was criticised as a “dereliction of duty” in light of the obesity crisis among children.
The proceeds from the tax will be kept by the Exchequer rather than targeting it at health initiatives.
However, the Irish Heart Foundation said it should be taken out to fund programmes to reduce obesity.
Director of advocacy Chris Macey said it “raises the question as to whether the tax is a health measure, or just another revenue raiser to boost the State coffers whilst the Government fails yet again to resource crucial measures in the national obesity plan”.
Some €6m was delegated to ‘Healthy Ireland’ which is aimed at promoting better lifestyle habits to prevent disease.
The tax on fizzy drinks generated €31.72m in the first year.
The tax on sugarsweetened drinks came into force in May 2018 in a bid to wean children in particular off high-calorie soft drinks.
But all of the proceeds have gone into the Exchequer pool, unlike the UK which is specifically targeting its sugar tax to fund sports and breakfast clubs.
Obesity expert Dr Donal O Shea, of Columcille’s Hospital, Loughslinstown, Co Dublin, a consultant endocrinologist, also called for more investment in surgery to treat obesity.
“Obesity surgery is costsaving to the health service very rapidly,” he said.
“By not doing it, we are continuing to accept a really high cost burden for treating the complications of obesity without treating obesity.
“If you treat obesity, you save money.”
The tax is, however, having the positive effect of forcing more drinks manufacturers to reformulate their recipes for popular products and reduce their sugar content to avoid the levy.