PwC Unveils Sugar Tax Evaluator

27 Feb 2018 | 05.03 pm

PwC Unveils Sugar Tax Evaluator

Sugar tax comes into force on April 6

27 Feb 2018 | 05.03 pm

The ‘sugar tax’ comes into force on April 6 and to sweeten the situation for businesses PwC has introduced a sugar tax evaluator so that organisations can check if they are liable for the tax and if any exemptions apply to them.

The Sugar-Sweetened Drinks Tax is expected to generate around €40m annually for the taxman.

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

PwC says that many companies will be under pressure to ensure that they have the necessary arrangements in place. Before 6 April, companies will 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 and lodging returns
  • Register with the Revenue Commissioners for the SSDT

John O’Loughlin of PwC said: “Whether a wholesaler/distributor/retailer/producer/importer or a company making a self-supply, for example to employees, 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.

“Given the effective date is fast approaching, businesses need to review their supply chains and product portfolios to determine whether they are impacted. 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 — including having the resources in place to do so.”

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