Officials also raised concerns about the impact on juice manufacturers and warned that a tax on soft drinks would offer no incentive for people to move towards sugar-free offerings on the market.
The Revenue Commissioners also opposed the measure, stating that the tax may cost more to introduce than it would raise.
In advice to the Department of Finance, the Revenue Commissioners said it ‘strongly recommends against introducing the tax’ on the basis of the very high risk of tax evasion through the undeclared purchase of soft drinks in Northern Ireland for sale in the Republic.
3. Explain what tax evasion means.
Minister Varadkar said a 20% tax on sugar-sweetened drinks would result in a 1.25% reduction in obesity, which would be about 10,000 less obese adults.
4. Do you think a tax on sugar-sweetened drinks is a good or bad idea? Support your opinion with reference to the health of the economy and the health of Irish citizens.
