Summary:
The Regulation aims to reduce the consumption of sugar-sweetened beverages in Barbados. It does so by imposing a 10% ad valorem excise tax on their production and importation.
Description:
Excise Tax (Amendment) (No. 3) Regulations, 2017 amended the principal Excise Tax Regulations by expanding the list of taxable commodities as well as tax exempt goods.
Scope
A 10% ad valorem excise tax applies producers and importers of sweetened beverages across three tariff headings.
Firstly, tariff heading 20.09, is applicable to all sweetened fruit and vegetable juices, including concentrated, retail-packaged, and infant-use preparations of citrus, grape, pineapple, and other fruit and vegetable juices. Additionally, tariff heading 21.06 encompasses food preparations not elsewhere classified, including maybe syrups and other flavored or colored sugar syrups. Lastly, tariff heading 22.02 cover to mineral waters, aerated waters, and other non-alcoholic beverages containing added sugar, sweeteners, or flavoring, including aerated beverages, beverages containing cocoa, and malt beverages.
Exemptions
The following exemptions were introduced:
- Coconut water
- Evaporated milk
- Natural fruit juice
- Plain milk
Updates
The excise tax on sugar-sweetened beverages was increased from 10% to 20% in April 2022, in line with recommendations of the World Health Organization.