Will a Sugar Tax Work in Ireland?
By Keri Heath | Nov 11 2016
Keri Heath weighs up the pros and cons of the measure proposed in the recent budget.[br]ON October 11th, Minister for Finance Michael Noonan announced that the long discussed tax on sugary drinks will be implemented in the upcoming budget. The tax increase is set to become effective in 2018, to line up with the UK’s proposed sugary drink tax.In his statement to the Dáil, Noonan did not include any further details about the amount of the tax. The measure was introduced in the 2017 Budget along with other health related taxes, including an increase of 50c in excise duty on cigarettes. The supporters of the tax state that it will raise awareness of public health and encourage citizens to make wholesome choices.“It is of upmost importance to me that such a tax is as effective as possible, as fair as possible and minimises the administrative burden on business,” Noonan said.“There are many studies that show it is not any single food that causes obesity”
Noonan stated that there is still a lot of analysis that needs to take place. Along with the tax announcement, he introduced a public consultation process to allow citizens to discuss the implementation of the tax. Interested parties can submit comments and concerns on the department’s website. The process will continue until January 3rd.Nevertheless, some argue that a tax on sugary drinks doesn’t do nearly enough to address issues of public health in Ireland. University College Dublin Agriculture and Food Science Professor Eileen Gibney believes that a tax on any one item or food product is only part of the solution. “There are many studies that show it is not any single food that causes obesity, it is down to diet, portion size, and calories,” she explained. “We need a broad and sustained campaign educating the public on diet and lifestyle.”“Taxes on sugar sweetened beverages will have a modest if any effect on obesity at a population level”
Ireland is not the first country to propose such a tax increase. Countries such as France and Mexico have already implemented a tax on their sugary drink products. However, Gibney stated that the results from these countries are mixed. “Some countries do see a significant reduction in consumption of sugar sweetened beverages, but they don’t necessarily see a reduction in BMI or obesity levels,” Gibney said. “So whilst it may have an effect on one food, this may not affect the public health issue of obesity.”Lorraine Brennan, also of the UCD Agriculture and Food Science Department, agrees that a sugary drink tax would only address part of the issues relating to obesity. “Evidence from Mexico shows that increased taxation on sugar sweetened beverages reduced their sales,” Brennan said. “However, the latest evidence also indicates that taxes on sugar sweetened beverages will have a modest if any effect on obesity at a population level.”“This will cost the Irish consumer dearly with no evident benefits”
The Food and Drink Industry Ireland (FDII) has also come out in public criticism of the decision to move forward with the tax. In February, the FDII stated that the soft drink tax in Mexico only reduced average calorie intake by 4.7 calories a day. In a statement released on Oct. 11, FDII Director Paul Kelly said that the tax measure does not go far enough. “Evidence based policy has collapsed in the face of populist and ineffective public health measures,” Kelly said. “This will cost the Irish consumer dearly with no evident benefits and it is the thin end of the wedge for further damaging discriminatory taxes on the Irish food and drink sector.”According to a report released earlier in the summer by the World Health Organization, Ireland is on track to become one of the most obese countries in Europe by 2030. Estimates predict obesity rates to rise from 23% to 57% among women and from 26% to 48% in men in Ireland. This places Ireland at the top of the “overweight” table, equalled only by Uzbekistan.At any rate, Ireland’s struggle with weight is part of a larger trend towards obesity in Europe. The WHO predicts Bulgaria and Belgium will have the highest proportion of overweight and obese citizens by 2030. Greece, Spain, Sweden, Austria and the Czech Republic are also expected to experience significant increases in obesity.“Making healthy food available, affordable and something people understand they need to consume is also important”
“Perhaps taxing food is one answer, but making healthy food available, affordable and something people understand they need to consume is also important,” Gibney said. “If the money raised is ring-fenced for public health, as some have called for it to be, then that would be beneficial.”In his announcement, Noonan said that this budget is the first step to a new government. He hopes that future budgets will go further in that direction.