A SWEET LITTLE EARNER
THE SUGARY DRINKS TAX HAS SEEN THE GOVERNMENT COLLECT AROUND £893,000 EVERY DAY
MORE than than £150 million has been collected from the sugary drink tax so far, new figures have revealed.
The Soft Drinks Levy was first mentioned in the 2016 budget by the then-chancellor George Osborne and applies to the importation of soft drinks containing added sugar.
The levy was introduced in April this year, and figures from HM Revenue and Customs show that £154.3 million was
Our teenagers consume nearly a bathtub of sugary drinks each year on average, fuelling a worrying obesity trend in this country
collected in the following six months.
At the time it was launched, Robert Jenrick, the Exchequer Secretary to the Treasury, said: “The Soft Drinks Levy is one part of our plan to tackle childhood obesity.
“All revenues raised through the levy will directly fund new sports facilities in schools as well as healthy breakfast clubs, ensuring children lead healthier lives.
“We want to persuade manufacturers to reformulate their drinks and lower the sugar content.”
The levy works by imposing either a “standard” or “higher” charge on drink with added sugar.
The higher rate is 24p a litre, applying to drinks that have eight or more grams of sugar in every 100ml.
The lower rate is 18p a litre for drinks that have between five and seven grams of sugar in Drink companies must pay the tax if their product has had sugar added during production and if it contains at least five grams of sugar per 100ml - either in its ready-to-drink or diluted form.
There are currently 457 live traders registered for the levy.
Its introduction has led some companies to reformulate their drinks to remove their liability to the tax.
In fact, according to the government more than 50 per cent of companies have done just that.
Ribena, for example, cut its sugar content from 10g to less than 4.5g for every 100ml, following the likes of Irn-Bru and Robinsons Fruit Shoot by replacing much of its sugar content with sweeteners.
Coca-Cola confirmed it would have no recipe change, leading the fast-food outlet McDonald’s to hike up prices of medium drink and large drinks by 12p and 14p respectively - effectively making customers cover the additional import tax.
Earlier this year Coca-Cola rebranded the packaging of its Coke Zero Sugar to look more like the full-sugar alternative. The changes form part of a drive for the brand to sell more no-sugar drinks. Commenting on the introduction of the levy, Public Health minister Steve Brine said: “Our teenagers consume nearly a bathtub of sugary drinks each year on average, fuelling a worrying obesity trend in this country.
“The Soft Drinks Industry Levy is ground-breaking policy that will help to reduce sugar intake, whilst funding sports programmes and nutritious breakfast clubs for children.”