Ireland's sugar tax on soft drinks worked — now it's time to make it even tougher, researchers say

RESEARCHERS FROM FOUR Irish universities are calling on the government to increase Ireland’s sugar tax, arguing that stronger measures are needed to tackle rising obesity levels and encourage drinks manufacturers to cut sugar content even further.

The appeal comes as newly published figures show revenue from the Sugar-Sweetened Drinks Tax (SSDT) remained unchanged at €30.5 million in both 2024 and 2025.

The researchers, whose findings were published in the Irish Medical Journal, said the static returns suggest progress has stalled and that Ireland should now adopt a more ambitious approach similar to that being introduced in the UK.

Under the current system, drinks containing between 5g and 7.99g of sugar per 100ml attract a tax equivalent to about five cent on a standard 330ml can, while drinks containing 8g of sugar or more are taxed at around eight cent per can.

Researchers argue those rates were enough to encourage many manufacturers to cut sugar levels when the levy was introduced in 2018, but say the incentive to reformulate products further has now weakened.

They point to the UK, where the threshold for the lower tax band is set to fall gradually over the coming decade, bringing more drinks into scope unless manufacturers reduce sugar content again.

According to the research team, the tax has already delivered significant results, with major brands including Pepsi, 7Up, Fanta, Sprite and Club Orange reformulating products in 2018 to bring sugar levels below the taxable threshold. They added, however, that the incentive to reformulate products further has now weakened.

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Dr Frank Houghton of the Technological University of the Shannon (TUS), who led the study, said the levy had proven effective but needed to go further.

“The sugar tax had a real impact. The research clearly demonstrates this,” Houghton said.

“It encouraged manufacturers to reformulate their recipes to avoid the tax. That is a major success. We now need to build on that and encourage further reformulation by industry.”

The researchers want Ireland to follow the UK’s model, which will gradually lower the sugar threshold at which drinks become liable for the tax over the coming decade.

They also called for revenue generated by the levy to be ring-fenced for obesity prevention programmes, treatment services and community food initiatives.

The World Health Organization has previously described sugar taxes as a public health “best buy”, meaning they are considered highly cost-effective interventions.

More than 115 countries have introduced some form of sugar tax, while recent estimates suggest around 60% of adults in Ireland are overweight or obese.

Among children, the figure is estimated to be about 20%.

The researchers said stronger action is needed to address the long-term health consequences of obesity, including diabetes, cardiovascular disease and some cancers.

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