As manufacturers prepare for the newly introduced Special Consumption Tax on sugary drinks, GraceKennedy Limited has called for policies that encourage reducing sugar content instead of relying mainly on taxation, Jamaica Observer reported.
Group CEO Frank James said while the company supports the government’s focus on public health, a tax structure that promotes product reformulation would deliver better long-term results.
He pointed out that the current flat tax does not differentiate based on sugar levels, limiting its ability to push companies to lower sugar content. According to him, such differentiation could more effectively influence industry behaviour.
James said the company has already been working on reducing sugar across its product range, offering healthier options without compromising on taste or quality.
The tax measure, aimed at boosting government revenue and improving health outcomes, has triggered mixed reactions. While health advocates have welcomed it, some industry players argue it may not achieve the desired impact and could affect lower-income consumers.
Opposition finance spokesman Julian Robinson also supported reformulation, suggesting that mandating lower sugar levels within a set timeframe would directly cut consumption.
The levy of $0.02 per millilitre on beverages with added sugar or sweeteners is expected to generate about $10.1 billion in revenue. It will apply to both local and imported drinks, including sodas and fruit-based beverages, and is set to come into effect on May 1, 2026.
