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.
According to Williams, discussions with beverage producers influenced the shift toward a tiered taxation model, an approach also supported by the Ministry of Health and Wellness (MoHW).
“We have met with the beverage manufacturers, they have asked us to go to the tiered approach to which we are not opposed and the Ministry of Health and Wellness (MoHW) prefers the tiered approach as well,” said Williams in her written remarks.
Further outlining the plan, she indicated that a joint working group involving the MoHW, the Ministry of Finance, and industry representatives will continue throughout the year to refine the tiered system.
“In the course of the year, we will continue the working group — MoHW, Ministry of Finance and manufacturers — to work towards the tiered system. So we will begin with the simple application that targets the grams of sugar. In keeping with this administration’s leadership style, we listened,” she added.
Initial proposals had set the tax at two cents per millilitre, a structure chosen primarily for ease of administration.
Concerns raised by stakeholders highlighted that a flat, volume-based system failed to differentiate between beverages with varying sugar levels.
“However, stakeholders pointed out and we agreed that a flat, volume-based tax does not vary by sugar content and therefore does not distinguish between a low sugar and the high sugar product.”
Responding to those concerns, the Government has revised the Special Consumption Tax (SCT) to align directly with sugar content rather than liquid volume.
“We took that concern seriously and because health has always been the underlying intent of the measure, we have redesigned the SCT (special consumption tax) to be based directly on sugar content rather than on the volume of the beverage,” said Williams.
Under the updated framework, the SCT will be applied at 22 cents per gram of added sugar, replacing the previously proposed volume-based rate.
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