A report commissioned by the Health Minister is said to recommend a hike in excise duty on minerals that could amount to 20 cent a bottle.
According to the Irish Independent the document will be submitted to the obesity committee of the Department of Health today for consideration.
The move would have the double effect of increasing revenue as well as tackling obesity.
Not a ‘fat tax’
It would push up the retail price of soft drinks with consumers paying more on top of the pre-tax price.
For example a bottle of lemonade which would cost €2 without tax is already subject to VAT at 23% bringing the price to €2.46.
A further 10% in a sugar tax would add a further 20c to the cost of that bottle meaning shoppers would end up paying €2.66 for the same product.
However it is believed the report stops short of seeking the introduction of a so-called “fat tax” that has been introduced in some other European countries.
The report was prepared by the Institute of Public Health in Ireland and was commissioned by Health Minister Reilly.
Professor Richard Layte from the ESRI says it could be effective.
He spoke with Breakfast here on Newstalk.