Dominica to tax sugary drinks

Consumers in Dominica will have to pay more for sodas following the announcement of a significant increase in prices from a local distributor as the government’s excise tax on sugary drinks takes effect.

The local distributor of sugary beverages, Josephine Gabriel and Company Ltd, announced via its Facebook page on Wednesday that come September 12 customers will see an increase in the price of their products. This is a result of the government’s excise tax on sugary beverages which took effect on September 1 after the announcement in this year’s national budget.

In his 2024/2025 national budget address, Finance Minister, Dr Irving McIntyre announced the government’s intention to raise excise taxes on sugar-sweetened beverages by $1per liter, and on alcohol and tobacco by $0.75 per liter and per kilogram, respectively. With the new tax, soft drinks have risen from $0.20 to $1.20 per liter, a 500 percent increase.

In a statement released on Wednesday, Josephine Gabriel and Co Ltd expressed its regret over the rise, stating, “This will result in price increases during your grocery shopping. We know this is important information for you and your family, our valued customers.” Under the revised rates, a case of Coca-Cola, Fanta, and Sprite will cost $93.95, up from the previous $67.75, with a suggested retail price of $4.50 per bottle.