UK Sugar Tax is Mistargeted

May 30, 2016 Taxation in UK

LONDON – The UK’s proposed sugar tax will not target some of the most sugar-laden drinks on the market, despite them having a higher sugar content than a standard soft drink.

In a new study the UK based Taxpayers’ Alliance (TPA) claimed that the country’s proposed tax on the sale of sugary drinks will unfairly be biased against low-income earners.

The TPA’s new study compared the potential impact of a sugar tax on different 49 types of drinks currently for sale in the UK.

The results of the study showed that while soft drinks like Coke would face the tax, other sugar-laden beverages such as juices and coffees would escape the levy.

It was shown that many drinks which would escape the tax, including syrup-based Starbucks coffees, actually contained more sugar per 100 millilitres than the drinks targeted by the tax.

Out of all the drinks surveyed, the 10 with the highest sugar content would all not be subject to the tax.

The chief executive of the TPA, Jonathan Isaby, claimed that the tax would end up impacting low-income families the most, while middle-class families would be unaffected.

The sugar tax is aimed at reducing the occurrence of obesity in the UK, which is estimated to cost the national health system approximately GBP 5.1 billion per year.

Photo By: Umberto Salvagnin