The sugar-sweetened drinks tax “sugar tax” will now commence on 1 May 2018 and not on 6 April 2018 as was the intention. The delay is to allow for the completion of the EU State Aid approval process.

According to the Department of Finance, “the sugar-sweetened drinks tax is the first of its kind to be reviewed by the European Commission and will provide a benchmark for State aid decisions in this area.” “A positive decision is expected in the coming weeks to allow for the commencement of the tax.”

Guidelines issued by Revenue on the sugar tax provide an overview of the new tax. The guidelines are published on the Revenue website and provide details on registration for the tax, reliefs and invoices/record requirements. These will primarily be of interest to businesses in the soft drinks manufacture and wholesale industries; most other people may just see an increase in the price of the drinks in question.

The sugar tax was announced in Budget 2017 and confirmed in Budget 2018. The tax is legislated for in Part 2, Chapter 1 of Finance Act 2017.

A similar regime was introduced in the UK with effect from 6 April 2018, called the Soft Drinks Industry Levy.