How will the government's sugar tax work?
Summary
The UK government plans to extend its sugar tax to include sugary milk-based drinks like milkshakes and lattes from April 2028. This measure aims to encourage healthier diets by reducing sugar intake, especially after seeing a reduction in sugar levels from the initial tax introduced in 2018. The sugar tax impacts pre-packaged drinks, requiring companies to either reduce sugar or pay a tax.Key Facts
- The sugar tax is officially called the soft drinks industry levy (SDIL).
- It was first introduced in April 2018 to reduce sugar intake and combat obesity.
- Starting April 2028, the tax will extend to include sugary milk-based drinks, such as milkshakes and lattes.
- Drinks made and served directly in cafés, restaurants, and bars are not subject to the tax.
- Some natural drinks like pure fruit juice and cow's milk are exempt.
- Currently, the tax is 18p per litre for drinks with at least 5g of sugar per 100ml, and 24p per litre for those with 8g or more.
- The government is considering lowering the sugar limit for the tax from 5g to 4g per 100ml.
- Since the tax was implemented, there has been a 46% reduction in sugar content in taxed drinks, but overall UK sugar consumption is still high.
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