Friday licensing deadline for beverage firms under new sugar tax

Tax Administration Jamaica (TAJ) has extended the deadline for manufacturers of non-alcoholic sweetened beverages (NASBs) to obtain licences under the Special Consumption Tax (SCT) regime to Friday, May 15.

The extension follows a meeting involving the Jamaica Manufacturers and Exporters Association, the Ministry of Finance and the Public Service (MoFPS), and TAJ as stakeholders continue to adjust to the new tax framework.

The SCT on sweetened beverages took effect on May 1 as part of amendments to the General Consumption Tax (GCT) Act. Manufacturers affected by the measure are required to be licensed under the Excise Duty Act and registered with TAJ.

TAJ said the extension is intended to give manufacturers additional time to comply with the new requirements.

As part of stakeholder-engagement efforts, the agency hosted a webinar on May 4, attended by more than 350 participants, to help businesses understand the legislation and compliance obligations.

A follow-up online panel discussion is scheduled for Thursday to provide further guidance and allow manufacturers to raise questions about the tax as well as licensing and registration requirements. The panel will include representatives from the MoFPS, the Tax Policy Unit, and TAJ’s legal, excise, and technical specialist units.

The tax applies to beverages containing added sugar or artificial sweeteners, including carbonated drinks, sweetened juices, sports drinks, energy drinks, and flavoured water.

Under the revised structure, the SCT is charged at a rate of J$0.22 per gram of added sugar or sweetener, a shift from the originally proposed volume-based system. The change followed industry backlash and consultations with stakeholders, which prompted the Government to adopt a model based on sugar content instead.

Minister of Finance and the Public Service Fayval Williams said at the time that the revised approach was intended to better align with public-health goals by directly targeting sugar consumption.

The Government has positioned the measure as part of a broader fiscal and public-health strategy aimed at reducing high levels of sugar consumption and tackling non-communicable diseases while strengthening revenue collection.

As a result of the tax, consumers may see price adjustments for affected products.