The sugar tax, which currently applies to fizzy drinks, may be extended to also cover milkshakes and pre-packaged lattes, new government plans have revealed. The government is currently consulting on the proposals that would end the exemption from the tax for milk-based drinks and non-dairy substitutes including oats and rice.
The Chancellor, Rachel Reeves, announced last year in the autumn budget that the government had considered widening the sugar tax. As Labour has “already pushed up the cost of living for families,” Shadow Chancellor Mel Stride said, this would be a “sucker punch” for households.
The sugar tax, or to give its official title, the soft drinks industry levy (SDIL), is a tax on pre-packaged drinks applying to manufacturers. It was introduced by the Tory government in April 2018 as a measure to reduce obesity.
The Treasury has also confirmed its plans to cut the maximum amount of sugar allowed in drinks before they be subject to the sugar tax be cut from 5g per 100ml, down to 4g. Initially, there had been an exemption for milk-based drinks. This was because of concerns over calcium consumption, especially for children.
But the Treasury has said that young people only receive 3.5% of their calcium intake from these drinks, saying that “it is also likely that the health benefits do not justify the harms from excess sugar.”
“By bringing milk-based drinks and milk substitute drinks into the SDIL, the government would introduce a tax incentive for manufacturers of these drinks to build on existing progress and further reduce sugar in their recipes,”it added.
The government consultation plans to continue until 21st July.
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