SCT on Sweetened Beverages to Be Based on Sugar Content

The Government is revising the Special Consumption Tax (SCT) on non-alcoholic sweetened beverages, shifting from a volume-based system to one based on sugar content, says Finance and the Public Service Minister, Hon. Fayval Williams.

She made the disclosure while closing the 2026/27 Budget Debate in the House of Representatives on Tuesday (March 24), where she announced that the SCT will be levied at a rate of 22 cents per gram of added sugar, rather than on the volume of the beverage. The measure is estimated to raise $10.1 billion.

In addition, the tax will go into effect on May 1, 2026, instead of April 1.

“We are a listening Government. We listened to the various representations, clearly assessed them, and where they have merit, we act… this change will require some lead time for manufacturers, importers, and our tax administration to prepare. The logic of this design is simple and principled. It is the sugar that causes the harm, so it is the sugar that should be taxed,” she said.

The Minister explained that the change in the approach to the SCT on non-alcoholic sweetened beverages will make the measure more effective and more equitable.

“Let me be clear about the intent. The SCT on non-alcoholic sweetened beverages was conceived from the very beginning as a health measure. Its purpose is to address the burden of non-communicable diseases – diabetes, obesity, hypertension – that bear down so heavily on our people and on our public health system,” she said.

She pointed out that the original announcement in February of a rate of two cents per millilitre was made for reasons of administrative simplicity.

“A volumetric tax is straightforward to calculate, to collect, and to verify. However, stakeholders pointed out, and we agreed, that a flat volume-based tax does not vary by sugar content and, therefore, does not distinguish between a low sugar and a high sugar product.

“We took that concern seriously, and because health has always been the underlying intent of the measure, we have redesigned the SCT to be based directly on sugar content, rather than on the volume of the beverage,” she stated.

The Minister explained that a beverage with no added sugar will attract no SCT, noting that a beverage with modest added sugar will attract a modest SCT and a beverage with higher sugar content will attract a higher SCT, directly and proportionally.

“This is entirely consistent with how the SCT on alcohol is levied, based on litres of pure alcohol. Importantly, this structure creates a genuine commercial incentive for manufacturers and importers to reduce the sugar content of their products. The lower the sugar, the lower the tax,” she pointed out.

The Minister noted that the application of the tax will be monitored, including its effect on prices, consumption patterns, reformulation decisions, and on public health outcomes, and the

Government will continue to dialogue with the beverage industry and health professionals on how this measure can be strengthened and improved over time.

She noted that the working group, which consists of the Ministry of Health and Wellness, the Ministry of Finance and the Public Service, and the manufacturers, will continue to meet during the year to work towards the tiered system of taxation, which the beverage manufacturers have requested.

“To manufacturers and importers, the message is straightforward, reduce the sugar in your products and the tax burden falls. The Government is not seeking to harm a sector that employs thousands of Jamaicans. We’re changing the incentive structure, and we believe the industry is fully capable of responding to it,” she said.

She further urged Jamaicans to make informed decisions about the products they consume and the implication that it will have on their health.

“To the Jamaican public, I ask you to consider there’s hardly a family in this country that has not been touched by diabetes, hypertension, or obesity. These are not distant statistics. They are our parents, our children, our siblings, our neighbours. Every lower sugar product on our shelves is a step in the right direction. Every informed choice at the shop counter is an act of investment in your own health, and in the health of this nation,” she added.