Wisynco hits out at 15% tax on energy drinks

Wisynco Group, the company which controls about 70% of the energy drink market in Jamaica, has hit out at the imposition of a 15% Special Consumption Tax (SCT) on energy drinks.

William Mahfood, Managing Director of the Group, said it is clear that the tax on energy drinks is a "knee jerk" reaction by the Bruce Golding –led administration that was not properly thought out.

He said the Government is seeking to have the tax implemented on non-alcoholic high-caffeine drinks, which, by definition, extends to certain carbonated beverages such as cola's, coffee and tea. 

"If the definition is for caffeinated drinks, non-alcoholic caffeinated drinks and they can show how they intend to differentiate between coffee and an energy drink like Boom or Red Bull and we agree with it, then we'll go ahead and start paying the tax," Mr. Mahfood told RJR News.

According to him, until the matter is clarified, his company will be holding the price of its energy drinks.

Mr. Mahfood is tasking the Government to going after greater compliance and cutting waste in the public sector instead of imposing more taxes.