Jamaica to tax sugary drinks based on sugar content starting May 1

The Jamaican Government will revise the Special Consumption Tax (SCT) on non-alcoholic sweetened beverages, shifting from a volume-based system to one based on sugar content, according to Fayval Williams.

Williams, Minister of Finance and the Public Service, made the announcement while closing the 2026/27 Budget Debate in the House of Representatives of Jamaica on Tuesday (March 24). Under the revised framework, the SCT will be levied at 22 cents per gram of added sugar, replacing the previously proposed volume-based tax. The measure is expected to generate approximately $10.1 billion in revenue.

The implementation date has also been pushed back to May 1, 2026, instead of April 1, to allow stakeholders additional time to prepare.

“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,” Williams said. “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.”

Williams explained that the revised tax structure is intended to make the measure both more effective and equitable, noting that the policy was designed primarily as a public health initiative to address non-communicable diseases such as diabetes, obesity and hypertension.

“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… that bear down so heavily on our people and on our public health system,” she said.

The minister noted that the Government initially proposed a tax of two cents per millilitre in February for administrative simplicity. However, stakeholders raised concerns that a volume-based approach would not distinguish between beverages with low and high sugar content.

“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 said.

Under the revised system, beverages with no added sugar will not attract the SCT, while products with higher sugar levels will face proportionally higher taxes. Williams noted that this mirrors the structure used to tax alcohol, which is based on litres of pure alcohol.

She added that the new structure is expected to create incentives for manufacturers and importers to reduce sugar content in their products.

“The lower the sugar, the lower the tax,” Williams said, noting that the Government is not seeking to harm the beverage sector, which employs thousands of Jamaicans, but rather to encourage healthier product reformulation.

Williams also indicated that the Government will monitor the impact of the tax, including its effects on prices, consumption patterns, product reformulation and public health outcomes. A working group comprising the Ministry of Health and Wellness Jamaica, the Ministry of Finance and the Public Service and beverage manufacturers will continue discussions toward a tiered taxation system requested by industry stakeholders.

She also urged Jamaicans to make more informed choices about their beverage consumption, noting that many families have been affected by chronic illnesses linked to excessive sugar intake.

“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.