Drinks industry fails to derail government sugar tax plan

MINISTERS have confirmed plans to push ahead with a sugar tax on soft drinks despite opposition from industry.

A Treasury document confirms the tax will be introduced from April 2018, with legislation put into the Finance Bill next year to pave the way for it.

In March, the Government announced it would introduce a sugar tax on the producers and importers of soft drinks with added sugar.

Drinks with 5g of sugar per 100ml will face a lower rate of tax, while those with more than 8g per 100ml will face a higher rate. These rates have yet to be set.

The Office for Budget Responsibility estimates the levy could add 18p to 24p to the price of a litre of fizzy drink if the full cost is passed on to the consum- er. Pure fruit juices will be exempt as they do not carry added sugar, while drinks with high milk content will also be exempt due to calcium content.

Alcoholic drinks with an alcohol by volume of up to 1.2% (ABV) are included in the levy although some will be exempt. The document said: “A levy on soft drinks will contribute to the Government’s plans to reduce childhood obesity by removing added sugar from soft drinks.

“The levy encourages producers of added sugar soft drinks to re- formulate their products to reduce sugar content, reduce portion sizes for added sugar drinks, and importers to import reformulated drinks with low added sugar to encourage consumers to move to healthier choices.”