So, it looks like the government is taking my advice and changing how it’s applying its new sugary drinks tax.

So when Finance Minister Fayval Williams announced the Special Consumption Tax on sugary drinks back in February, it instantly raised some questions. Because the original plan was a flat rate of 2 cents per millilitre, meaning every drink would be taxed based on volume and not sugar content.

This is what I said here on The Week That Was by Nationwide News Network:

Because if the tax applies across the board to sugary drinks, regardless of how much sugar is in the drink, does that disincentivise companies from making drinks with less sugar? So perhaps it should be applied instead on the sugar content rather than across the board for sugar

Now I wasn’t the only one who said that.  Manufacturers, importers, and of course the Opposition argued that the system was unfair because it treated low-sugar and high-sugar drinks the same.

Well, Fayval said the ministry heard the feedback and has adjusted the tax. Instead of taxing drinks by volume, the tax will now be based on how much sugar is actually in the drink.

The new rate is set at 22 cents per gram of added sugar, meaning the more sugar in a beverage, the higher the tax.

If the drink has no added sugar, it won’t get the extra tax.

They’ve also pushed back the implementation date from April 1 to May 1 to give companies time to adjust.

And this makes the most sense, because it incentivises companies to make drinks with less sugar drinks. And it encourages people to buy drinks with less sugar because they work out cheaper.

If the real goal is to reduce Jamaicans’ sugar intake, and the extra tax money is just a perk, then it makes sense.

And that’s the bottom line.