The Sugar-Sweetened Beverage Tax (Sugar Tax): Innovation and Stasis

Abstract

The 2024 review of the implementation of Ireland’s Sugar-Sweetened Beverage Tax (SSBT), or Sugar Tax as it is more popularly termed, noted a substantial reduction in sugar consumption from carbonated soft drinks¹. Much of this success was attributed to industry reformulation, which reduced the sugar content of many popular brands to below the tax threshold (5g of sugar per 100ml)1. Ireland currently operates a three-tier model of SSBT, with taxes charged at either the 0% rate (0.0g-4.99g of sugar per 100 ml), the lower rate (5g – 7.99g of sugar per 100ml), or the higher rate (>=8g of sugar per 100ml)¹. It must be acknowledged that the amounts charged under Ireland’s SSBT are modest at either 5 cents or 8 cents per 330ml can. As noted by Lombard & Koekemoer, Ireland’s stepped form of SSBT encourages such reformulation to levels below the tax threshold²...