UK Publishes Draft Sugar Tax

December 6, 2016 Taxation in UK

UK sugar taxLONDON – The UK has taken a practical step towards the introduction of a tax on the sale of sugary drinks.

On December 5th the UK government released the draft of its proposed new legislation which will see tax levied on the sale of sugary beverages.

Under the scope of the new rules, sugar-sweetened beverages will be taxed in two bands, with drinks a sugar content of more than 5 grams of sugar per 100 millilitres being taxes at a rate of GBP 0.18 per litre, while drinks with more than 8 grams of sugar per 100 millilitres being taxed at a rate of GBP 0.24 per litre.

Previously the government had estimated that the tax would raise as much as GBP 520 million per year.

It is estimated that the tax would ultimately add between GBP 0.18 and GBP 0.24 to the shelf-price of drinks sold in the UK.

The tax has faced significant push-back from manufacturers since it was first announced, however, the government has persevered with the idea, claiming that the tax will improve lifestyles, diets and health, while also raising funds for the healthcare system.