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.
A case of Quenchie will see an increase to $72.75 from $52.25, with a recommended retail price of $3.50. Additionally, a case of small Quenchie will now cost $59.30, up from $41.75, with the suggested retail price at $2.85.
The price hike has sparked varied reactions across Dominica, with many citizens expressing their approval on social media, citing health concerns, and suggesting a reduction in prices for local healthier alternatives.
However, not all Dominicans are convinced the hike in price is fair and complained about the cost of a healthier diet.
Government’s move to impose this tax is a combative measure to curb the high number of Non-Communicable Disease (NCD) cases on the island. The health minister says the negative impact of NCDs can cause a ripple effect on the country and its economy.
Frequently drinking sugar-sweetened beverages is associated with weight gain, obesity, type 2 diabetes, heart disease, kidney diseases, non-alcoholic liver disease, tooth decay and cavities, and gout, a type of arthritis.1-4 Limiting sugary drink intake can help individuals maintain a healthy weight and have healthy dietary patterns.
During his national budget address, he said, “It [NCDs] places a significant social, and economic, and financial strain on our society, it causes a strain on the healthcare care system, affects family life, and impacts the overall development of our country as more of our people become incapacitated or succumb to these illnesses.”
