Robinson: $10B sugary drink tax will hurt consumers

Julian Robinson, opposition spokesman on finance, has cast doubt on the Government’s claims that the imposition of a $10 billion tax on sugary drinks for the new fiscal year is a public health measure intended to reduce the consumption of sweet drinks.

While acknowledging that high sugar intake constitutes a real health concern and requires serious policy attention, Robinson said where the opposition parts ways with the government is whether this levy is genuinely about resolving that problem.

In his contribution to the 2026/2027 Budget Debate in Gordon House this afternoon, Robinson said if the Government's concern was about reducing sugar consumption and improving health outcomes, it has a more effective instrument available to it.

According to Robinson, the administration could require local manufacturers to reformulate their products, to reduce the sugar content, and provide a time period within which to do so.

He said introducing that measure would directly reduce the amount of sugar people consume, but instead, the administration chose to impose a tax.

Noting that the Government is the largest provider through the school feeding programme, Robinson said steps could be made to reduce sugar content for students in schools.

The people who consume sugary drinks in the highest volumes, said Robinson, are not necessarily doing so out of an attachment to sugar, but because the alternatives, including natural juices, coconut water, and other healthier options, are priced out of their reach.

The opposition spokesman insists that a tax genuinely designed to reduce consumption would project declining revenues as behaviour changes.

He said the Government would be looking at a shrinking revenue line, not a $10 billion one.

Turning to the environmental levy, Robinson said the tax will flow into the Consolidated Fund instead of being directed toward environmental protection of the country’s coastlines, watersheds, forests and natural infrastructure.

He indicated that the government planned to collect the levy in the name of the environment, but it was not dedicated to that cause.

Robinson warned that the tax was inflationary and would only drive up the cost of goods in the country.

The environmental levy is projected to pull in around $3.6 billion in revenues for the new fiscal year.

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