The UK government plans to extend the sugar tax to include milkshakes and dairy-based drinks in a bid to combat obesity. This proposal is part of a consultation led by Chancellor Rachel Reeves, aimed at ending the tax exemption currently enjoyed by these products. The Treasury highlighted that, while these drinks were previously exempt to encourage calcium intake, the limited nutritional benefits versus excess sugar levels necessitate reconsideration. Additionally, the sugar threshold for the tax may decrease from 5g to 4g per 100ml, impacting many existing product formulations.
The government is consulting on proposals to end the exemption from the sugar tax for dairy-based drinks, which could impact 203 pre-packed milk-based drinks.
The Treasury noted that the exemption for milk drinks was originally due to concerns about calcium intake, but the health harms from excessive sugar may outweigh these benefits.
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