Sugar tax comes into effect: Which products are affected?

The tax covers desserts, sweetened drinks, ice cream, candy, chocolate, and also includes certain sauces, pastries and bakery products.

The tax is calculated based on the amount of sugar per litre or kilogram. Products with a sugar content of less than 4.99 grams (or milliliters) are exempted, while products with a sugar content of more than 40 grams (or milliliters) are charged 85 francs per kilogram or litre per product.

The tax affects both importers when the product enters the region and local producers during the first delivery after processing.

For imported products, it will be collected by customs. Local producers must submit a monthly declaration to the tax service, with the first declaration expected to be completed by October 31, 2024. Exemptions are available and details can be found on the New Caledonian government website.

The tax was initially due to take effect on August 1, but was delayed by a month to allow companies to adjust their accounting and IT tools.

If you have any further questions, please contact the tax department.

If the tax represents money entering New Caledonia’s coffers first and foremost, its stated goal is more concerned with the health of consumers. The government wants to encourage manufacturers to reduce the amount of sugar in their products. ButThe returns from this tax must provide funding for the prevention of obesity and diabetes.

For health professionals, such taxes should be compared to tobacco or alcohol taxes, whose effects are primarily dissuasive.

Can taxes change bad habits? Our team asked this question in a report produced in early May 2024, after the text setting the tax rates was adopted:

Sugar taxes: What about consumers?

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© New Caledonia

Tax sugar to reduce chronic disease? According to the World Health Organization, this formula works. 108 countries around the world tax soda and sugary drinks. Success story: Mexico.