PwC launch sugar tax evaluator

27 February, 2018

PwC has launched a sugar tax evaluator to help businesses determine if they are liable for the new Sugar-Sweetened Drinks Tax (SSDT).

The tax, to be introduced on 6 April, is expected to generate around €40m annually. It will apply to the supply of drinks where the sugar content is in excess of 5 grams per 100ml.

Speaking at the launch of the sugar tax evaluator, PwC Ireland’s Global Trade & Customs leader John O'Loughlin said: "Our sugar tax evaluator is a useful step-by-step tool to help companies determine if they are liable to pay the tax, and if any exemptions may apply.”

The tax is €0.1626 per litre for drinks with a sugar content of at least 5g but less than 8g per 100ml, and €0.2439 per litre for drinks with a sugar content of 8g or more per 100ml.

“Given that the effective date is fast approaching, businesses need to review their supply chains and product portfolios to determine whether they will be affected,” said O’Loughlin. “Many companies will be under pressure to ensure that they have the necessary arrangements in place.

“Businesses who are affected should determine the impact on pricing and develop a new pricing strategy. In addition, they should also ensure that they are set up to deal with the administrative requirements of the new tax, including having the right resources in place."

In advance of 6 April, companies need to:

  • Determine if they are liable for the tax
  • Analyse their product range to determine which products are liable to the tax and how much tax
  • Assess if any supplies are exempt and/or qualify for any reliefs
  • Determine their pricing strategy (absorb and or pass on)
  • Reconfigure IT systems to ensure relevant data is captured and reported
  • Prepare for all administrative requirements associated with compliance including tax payments/lodging of returns
  • Register with the Revenue Commissioners

ENDS

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John O'Loughlin
Partner, PwC Ireland (Republic of)
Tel: +353 1 792 6093
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Jennifer Hawkins
Senior Manager, PwC Ireland (Republic of)
Tel: +353 1 792 8116
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Deirdre Lavery
Senior Manager, PwC Ireland (Republic of)
Tel: +353 1 792 5989
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Johanna Dehaene
Corporate Communications, PwC Ireland (Republic of)
Tel: +353 1 792 6547
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