Tax on sweet drinks
The government has imposed a new tax to encourage Barbadians to consume less sugar.
Effective August 1, a 10 per cent excise tax will be applied to the cost of locally produced and imported sweetened beverages such as carbonated soft drinks, juice drinks, sports drinks, and fruit juices.
The tax will be levied on the value of the product before the Value Added Tax (VAT) is applied.
“Beverages containing intrinsic sugars only such as 100 percent natural fruit juice, coconut water, plain milk, evaporated milk will not be subject to the excise tax,” said Finance Minister Chris Sinckler as he delivered the national budget.
He noted that the measure which is expected to generate in excess of $10 million in revenue this fiscal year will be reviewed in another two years to determine how it affected the behaviours of producers, importers and consumers and whether it should be extended or intensified.