Ministers and campaigners believe it has already proved to be a success with many firms reducing sugar content ahead of the change. But others say it is still too early to judge the impact. Leading brands such as Fanta, Ribena and Lucozade have cut the sugar content of drinks, but Coca-Cola has not. The introduction of the levy means the UK joins a small handful of nations, including Mexico, France and Norway, which have introduced similar taxes. The levy is being applied to manufacturers – whether they pass it on to consumers or not is up to them. Drinks with more than 8g per 100ml will face a tax rate equivalent to 24p per litre. Those containing 5-8g of sugar per 100ml will face a slightly lower rate of tax, of 18p per litre. Pure fruit juices will be exempt as they do not carry added sugar, while drinks with a high milk content will also be exempt due to their calcium content. Originally, the Treasury forecast it would raise more than £500m a year, but that has now been reduced to £240m because some manufacturers have reduced the sugar content in their products. In England that income is being invested in schools sports and breakfast clubs.

No Comments

Leave a Comment