The amount of money expected to be raised by an incoming sugar tax has been overestimated by almost €100 million.
It’s expected the incoming levy on sugary drinks will yield around €40 million per year, rather than the €134 million predicted in 2014, the Sunday Business Post reports.
The Department of Finance’s tax strategy group admit they relied on “imperfect” and “speculative approxomations” in calculating that initial estimate.
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It’s also believed that soft drink manufacturers have altered their recipes to reduce sugar content and avoid the tax.
