Sugar Tax in Impractical

November 19, 2015 Taxation in New Zealand

LONDON – There is no guarantee that the cost of sugar taxes will be passed to consumers, and the tax is too hard to implement in real life.

At a seminar held on November 17th the director general of the Food and Drink Federation Ian Wright claimed that it is not practical to implement a sugar tax in the UK, and that such a tax would not have the effect that is intended by the government.

The Director suggested that a tax on the sugar content on food would be “almost impossible” as it would require inspectors to visit almost all the food productions plants in the country to test the sugar content of food prior to its shipment.

He added that the government’s upcoming cuts to spending would also result in a reduction in trading standards officers, leaving the task of inspecting sugary foods to an even fewer number of officers.

Further, Ian Wright claimed that the government has also promised that it would not implement new taxes this year, and that there is no guarantee that manufactures would pass the tax hike to consumers or that the tax would raise any significant amount of revenues.

Photo By: Vox Efx