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Ireland has engaged in extensive and constructive discussions with the European Commission to ensure that once commenced, the Sugar Sweetened Drinks Tax does not infringe EU State aid law. 

Following these constructive discussions with, and a formal notification to, the European Commission, a positive decision is expected in the coming weeks to allow for the commencement of the tax.

In order to allow for completion of the necessary administrative processes in relation to State aid approval, the commencement of the tax on sugar-sweetened drinks will now take place on 1 May 2018 and not on 6 April 2018 as was the intention. 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. Key stakeholders have already been informed of this development.    

The sugar-sweetened drinks tax is designed to help tackle growing levels of obesity. The World Health Organisation recommend limiting consumption of sugar sweetened drinks as part of a strategy to tackle obesity. This tax is one of a suite of measures being implemented as part of an overarching policy framework to address this issue. It is hoped that the introduction of a financial barrier on sugar-sweetened drinks will result in reduced consumption by incentivising individuals to opt for healthier drinks in tandem with providing motivation for the soft drinks industry to reformulate by reducing added sugar content and delivering healthier products.