The UK government is considering extending its sugar tax on fizzy drinks to include milkshakes and other dairy-based drinks, alongside non-dairy alternatives. Proposed changes involve reducing the maximum allowable sugar content for exemption from the tax from 5g to 4g per 100ml. This move follows an earlier tax introduction aimed at curbing obesity in 2018. While 89% of fizzy drinks currently avoid the levy, concerns arise regarding added costs for consumers and the justification of health benefits from dairy drinks given their minimal calcium contribution for youths.
The SDIL was introduced by the Conservatives in April 2018 as part of their anti-obesity drive, aimed at reducing sugar consumption across the UK.
By extending the sugar tax to include dairy and non-dairy drinks, the government aims to encourage manufacturers to further reduce sugar in their recipes.
The Treasury states that 89% of fizzy drinks sold in the UK do not pay the tax due to widespread reformulation since the initial SDIL announcement.
Concerns have been raised by the Institute of Economic Affairs about the potential financial impact on consumers as a result of the proposed sugar tax expansion.
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