Government Revises Sugary Drinks Tax Following Industry Pushback

The implementation of Jamaica’s tax on non-alcoholic sweetened beverages, projected to generate $10 billion in the 2026/27 fiscal year, has been delayed until May 1.

Finance Minister Fayval Williams confirmed the adjustment on Tuesday while wrapping up the 2026/27 Budget Debate in the House of Representatives.

During consultations, beverage manufacturers indicated a preference for a tiered taxation structure, a position that Williams said the Government does not oppose and which also aligns with the stance of the Ministry of Health and Wellness (MoHW).

Through her remarks, the minister explained that engagement with stakeholders will continue via a joint working group comprising the MoHW, the Ministry of Finance, and industry representatives to refine the tiered system over time.

At the initial stage, the Government will implement a simpler method that focuses directly on the grams of sugar, reflecting what she described as a responsive approach to stakeholder input.

Earlier plans had proposed a flat rate of two cents per millilitre, primarily chosen for ease of administration.

Feedback from stakeholders, however, highlighted that a volume-based system fails to account for differences in sugar content between beverages, treating low-sugar and high-sugar products the same.

Taking those concerns into account, Williams indicated that the policy was redesigned to ensure that health considerations remain central to the measure.

As a result, the Special Consumption Tax (SCT) will now be calculated based on sugar content rather than beverage volume.

Under the revised structure, the SCT will be applied at a rate of 22 cents per gram of added sugar, replacing the previously proposed volume-based approach.

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