Sugar Tax: What You Need to Know
The UK government is set to expand its sugar tax scheme to include milk-based drinks like milkshakes and lattes, marking a significant step in the fight against obesity. This move aims to further reduce sugar intake and promote healthier diets.
How It Works
The sugar tax, officially known as the Soft Drinks Industry Levy (SDIL), is a tax on pre-packaged drinks with added sugar. It was initially introduced in April 2018 by the Conservative government to tackle obesity and promote healthier eating habits.
From April 2028, companies producing milk-based drinks will be required to reduce the sugar content or face the sugar tax. This could result in less sugary drinks or slightly higher prices.
Included Drinks
The sugar tax applies to pre-packaged soft drinks with added sugar, including those sold in cans, bottles, and cartons in supermarkets. It already covers most sugary and fizzy soft drinks. Soon, it will also target pre-packaged sugary milk-based drinks like milkshakes and lattes, which have been previously exempt due to their calcium content.
The government is reconsidering this exemption, introducing a 'lactose allowance' to account for the natural sugars in milk. Milk substitute drinks, such as soy, almond, or oat drinks, were previously exempt if they contained 120mg of calcium per 100ml, but any added sugars beyond the main ingredient will now be taxed.
Excluded Drinks
The sugar tax does not apply to drinks made and served in cafés, restaurants, and bars, so coffees and other milky drinks made on-site are exempt. Soft drinks made only with natural sugars, like cows' milk and pure fruit juice, are also not taxed.
Additionally, alcohol-free beer or wine, infant formula, drinks sold as powder, and cocktails or mocktails served in open containers are not included in the sugar tax.
Tax Rates and Impact
Currently, the tax is 18p per liter on drinks with at least 5g of total sugar per 100ml and 24p per liter on drinks with 8g of sugar or more. The government is considering reducing the maximum sugar allowed from 5g to 4g per 100ml.
The sugar tax has already led to a 46% reduction in sugar content in affected soft drinks, with nearly 90% of the market now containing less sugar than the tax threshold. However, experts emphasize that there is still too much sugar in UK diets, and the current intake is double the recommended limit of free sugars (5% of daily energy intake). Obesity rates remain a pressing concern, with nearly two-thirds of the UK population being overweight or obese.
This prompted the government to review and expand the tax to milk-based drinks, highlighting the ongoing efforts to address the obesity crisis and promote healthier lifestyles.
