The UK Government has called for consultation on proposals to expand sugar tax on soft drinks and include dairy drinks.
Levy could the soft drinks industry (SDIL), introduced in 2018 as an obesity measure, expanded to cover drinks with lower sugar content and milk and milk replacement drinks content, which had so far been excluded.
The consultation sets out proposals “to build on the success of the SDL in encouraging soft drink producers to reduce sugar content”, says HM Revenue and Customs and HM Treasury in a joint statement.
The proposals are: reducing the minimum sugar content for SDIL to apply at 18C (24p) per liter from 5-7.9g per 100ml to 4g-7.9g per 100ml; To remove the exemption for dairy drinks when introducing a 'lactose allowance' that does not punish natural sugars from milk; And to remove the exemption for 'extra sugar' milk replacement drinks beyond those sugars derived from the main ingredient such as oats or rice.
Currently, drinks are charged with sugar content of 8g or more sugar per 100ml at the higher rate of 24p per liter.
In a statement, a spokesman for the Food and Drink Federation of Commerce Association said: “Food and drink manufacturers face a series of inflationary pressure and the government must continue to create the right conditions for innovation businesses and also be clear about their long -term goals to promote business confidence. A predictable regulatory environment is vital to ensuring that our sector develops.”
Manufacturers had already significantly reduced sugar content in drinks over the last five years, including in non -SDIL milk drinks, the spokesman added.
The British Soft Drinks Association said the changes were unnecessary. “This decision moves confusing and damaging from the goal posts that risk undermining years of reformation investment with suspicious positive health results. More than seven in ten soft drinks sold in the UK are low or no sugar and the total sugar extracted from soft drinks between 2015 and 2024 is not just under three quarters of a billion chat.
A BSDA spokesman also highlighted “large and unprecedented financial headgear to our members, from record inflation and Nic's progress, to the costs of spiral ingredients and incoming trade tariffs”.
The spokesman added: “Increased costs has already affected the ability of our members to grow their businesses and boost employment, and reducing SDIL threshold risks making this even more challenging.”