Concerns are mounting over how Jamaica’s new tax on sugary drinks will be implemented, with beverage manufacturers warning that the policy could put local companies at a disadvantage while doing little to encourage healthier consumption habits.

Speaking on Taking Stock, Chairman of Wisynco Group, William Mahfood said the industry is still in discussions with the Government and tax authorities after changes in the final legislation expanded the tax beyond products containing sugar alone.

Mahfood explained that Finance Minister Fayval Williams had initially indicated that the tax would apply only to drinks with added sugar. However, the gazetted legislation now includes beverages made with artificial and alternative sweeteners.

“The current system proposed would have the local manufacturers at a huge disadvantage to importers,” Mahfood said. 

“We can’t continue to hurt local manufacturing and put them at a disadvantage to imports.”

He argued that the revised approach removes the incentive for beverage companies to reformulate products with lower sugar content because all sweetened beverages would still face taxation. Mahfood also pointed to inconsistencies in the law, noting that packaged drinks would be taxed while fountain sodas sold at fast food restaurants would not.

Wisynco has already started reformulating some beverages to reduce sugar levels while maintaining flavour, according to Mahfood.

The chairman also questioned whether sugar taxes are effective public health tools, citing examples from Mexico and the Dominican Republic.

“My real concern from the beginning is that by taxing sugar beverages you’re taxing consumers and taking away money from them,” he said.

Despite the concerns, Mahfood said he believes “good sense will prevail” and expressed hope that the Government will revise the policy to target only sugar-based products.