UK Hospitals to See Sugar Tax

January 18, 2016 Taxation in UK

LONDON – The UK will see a sugar tax within 5 years, but, so far, it will be implemented only in hospitals and health centres.

The CEO of the UK National Health Service Simon Stevens is urging for a sugar tax to be enacted in all vending machines and cafes in the UK by the year 2020.

The so-called sugar tax will be enacted on the sale of sugary drinks and other sugar laden foods provided in all local health centres in the country, and most acute, mental health and community services hospitals.

No set rate has yet been proposed for the tax, but it was revealed that the price increases will be enacted over the next few years as new supply contracts and product lines are launched.

It is estimated that if the tax was set at approximately 20 percent, it could raise approximately GBP 40 million per year, which would be used to launch new health programs and provide extra funding for staff healthcare.

The CEO noted that the tax will not only benefit the general public, but also the workers of the NHS, saying that the measure will help ensure “…the sustainability of the NHS itself.”

Photo By: Umberto Salvagnin