Reformulation means revenue lower than expected
Situated off the west coast of England, the Isle of Man is a self-governing Crown dependency with its own directly elected legislative assemblies, administrative, fiscal and legal systems.
Its 2018 Budget has put back the introduction of a sugar tax back one year.
“Treasury has postponed the introduction of the Soft Drinks Industry Levy by one year to 1st April 2019 to enable its introduction in the Island as a shared common duty under the 1979 Customs & Excise Agreement,” says the government in the Budget documents.
Income raised by the levy will be used to tackle obesity.
In his Budget speech, the minister for the Treasury, Alf Cannan, said: “Last year I proposed to introduce a Soft Drinks Industry Levy or SDIL with effect from April 2018 mirroring plans unveiled by the UK Government to bring in an equivalent tax from the same date.
“I can announce that SDIL will be deferred for one year to be introduced as a shared duty from April 2019.
“Since SDIL was first proposed the soft drinks industry has been busy reformulating many of its products to reduce their sugar content. This will result in much lower SDIL revenue than the £1m ($1.4m) originally anticipated.
“Nevertheless government will keep its promise to invest £100,000 during 2018/19 plus all future SDIL receipts into public health programmes to reduce childhood obesity and encourage physical activity and balanced diets.”