Move to tax sugary drinks spreading around the world

Following news that ministers in Scotland are debating a proposal that would give local authorities power to introduce a tax on sugary soft drinks, Irish Health Minister James Reilly said on Monday that he is also examining the possibility of imposing a sugar levy in that country.

In Scotland, Shadow Public Health Minister Richard Simpson pointed out that Scotland consumes 20 per cent more fizzy drinks than England.

Both proposals cite France as a model: as of January 1, tax on sugar-added drinks will increase from 5.5 per cent to 19.6 per cent, a move that has generated a significant amount of controversy with beverage giants like Coca-Cola threatening to suspend million-euro investments. France’s new tax is expected to generate €120 million in French coffers.

Meanwhile, critics say a new sugar tax would hit the poor the hardest and claim that no definitive links have been established between fizzy drinks and obesity. Hungary enforced a “hambuger tax” this month on junk foods. Proceeds will go to the country’s health care costs.