The sugar tax currently applied to fizzy drinks could soon be extended to milkshakes and similar treats under new government proposals. Plans to end the exemption from the levy for dairy-based drinks, as well as non-dairy substitutes such as oats or rice, were put out for consultation on Monday.
The Treasury confirmed plans to press ahead with the changes on Monday, as well as a proposal to reduce the maximum amount of sugar allowed in drinks before they become subject to the levy from 5g to 4g per 100ml.
As a result of widespread reformulation after the initial announcement of the so-called soft drinks industry levy (SDIL), 89% of fizzy drinks sold in the UK do not pay the tax, the Treasury said.
The SDIL was first implemented in April 2018 by the Conservative government as part of efforts to tackle obesity. Milk-based drinks were initially excluded due to concerns about the potential impact on calcium intake, particularly among children.
However, the Treasury now argues that young people obtain only a small fraction (around 3.5%) of their calcium from these drinks. They stated that “it is also likely that the health benefits do not justify the harms from excess sugar.”
The government believes that including milk-based and milk substitute drinks in the SDIL would encourage manufacturers to further reduce sugar in their products, building on the progress already made with fizzy drinks.
However, the proposals have already drawn criticism. The Institute of Economic Affairs, a free-market think tank, voiced concerns about the potential increase in costs for consumers.
As per news report by The Guardian, Christopher Snowdon, the institute’s head of lifestyle economics, argued that “the sugar tax has been such a dramatic failure that it should be repealed, not expanded.” He also questioned the government’s commitment to not raising taxes on working individuals.
The government has launched a public consultation on these proposed changes, which will remain open from Monday until July 21st.
