Summary:
The objective of this policy note is to increase the tax rate of such products in an effort to reduce sugar consumption.
Description:
The rate of excise tax on sweetened beverages was increased from 10%, as established by Excise Tax (Amendment) (No. 3) Regulations, to 20%. The Budgetary Proposals and Financial Statement announced the new rate as a part of effective fiscal policy on sweetened beverages. In this sense, the Government of Barbados’ mandate adavances to reduce sugar consumption.
The new rate applies to products falling under tariff headings 20.09, 21.06 and 22.02. This list gives examples of such products:
- fruit juices,
- vegetable juices,
- food preparations such as the following:
- mauby syrup and other flavored or colored sugar syrups,
- waters, including mineral waters and aerated waters containing added sugar or other sweetened matter of flavored, and
- other non-alcoholic beverages.