Tax on non-alcoholic sugar sweetened beverages redesigned to apply to amount of sugar instead of beverage volume

The tax on non-alcoholic sugar sweetened beverages has been redesigned to now apply to the amount of sugar in it, instead of on the beverage volume.

The change was made in response to concerns raised by manufacturers and recent discussions in the wake of the initial announcement of the proposed tax, as art of revenue measures for the 2026/27 budget.

Finance Minister Fayval Williams gave the update today in the Lower House as she closed the Budget Debate.

Mrs. Williams explained that the new proposal is for the special consumption tax of 22 cents per gram of sugar effective May 1. 

She pointed out that lower sugar means lower tax. 

She added that discussions on the tax will continue with manufacturers and other stakeholders.  

In the meantime, Mrs. Williams also indicated that following concerns raised by manufacturers, there has a been an adjustment to the Environmental Protection Levy.

The 75 percent sales based tax will be retained, but with a change in levy rate to 0.85 percent.