Sugar Taxes Wont Work in the UK

August 22, 2016 Taxation in UK

LONDON – New research says that sugar taxes in the UK would not make a positive impact on tax revenues, nor would they reduce waistlines.

New research released on August 22nd by the UK think-tank Institute of Economic Affairs (IEA) indicates that introducing a levy on the sale of sugar sweetened beverages in the country would not help decrease the occurrence of obesity.

The research completed by the IEA showed that there is not significant link between the consumption of sugary beverages and the instance of childhood obesity.

It was shown that if the effect of sugar-sweetened drinks is modelled on a country-by-country basis, there did not appear to be any significant indicators which supported the claim that reducing the consumption of such drinks would improve overall health levels.

It was further noted that many drinks currently on the market would not be able to be reformulated to reduce sugar levels, with low-sugar drinks already taking up approximately a quarter of the market, while half of the market is taken up by classic drinks such as Coke and Pepsi, which are unlikely to be updated in response to a tax.

In addition to the lack of positive effect from the tax, it was also claimed that the measure would primarily affect low-income families, while also not raising enough revenues to cover enforcement costs.

Photos By: Jannes Pockele