United Kingdom sugar tax comes into force

Sugar tax

Before the sugar levy, 5% of soft drinks in the United Kingdom came from untraceable sources, also known as grey stock, but the Federation of Wholesale Distributors (FWD) and the British Soft Drinks Association (BSDA) told Retail Express this could rise.

A groundbreaking sugar tax enters into force as of today in the United Kingdom, which joins a handful of other countries which have already introduced similar taxes.

MPs backed our Hands Off Our Grub drive, which follows the sugar tax on beverages. Professor Nava Ashraf, from the London School of Economics, is a leader in the field of behavioural economics.

Pepsi and Coca Cola refused to slash the sugar content in their classic drinks over fears of a consumer backlash.

The global report found they are actually helping the poor, with most of the tax revenues coming from higher income households.

The scale of illicit soft drinks will depend just as much on how retailers react as to how organised illicit sellers are.

The Australian Medical Association has urged the government to introduce a tax "as a matter of priority" to cut down on consumption levels.

As part of an anti-obesity drive, from April 6 United Kingdom shoppers will have to pay 18p (24 U.S. cents) or 24p more a liter, depending on how much added sugar a drink contains.




Funds raised by the sugar tax will be diverted into school sports, the Government insists.

Prices of popular drinks may rise and the size of portions shrink as a result.

The sugar tax was announced by Chancellor Philip Hammond in his budget statement in 2017.

Sugar-free drinks such as Diet Coke and Coca-Cola Zero will be exempt from the levy.

Professor Helen Stokes-Lampard, chair of the Royal College of Global Positioning System, said: "A tax on sugary drinks is a positive move forward in tackling this obesity epidemic".

A spokesman for the drink's maker A.G. Barr said: "Irn-Bru continues to be made using the same secret Irn-Bru flavour essence, but with less sugar".

Three quarters (75 per cent) of consumers say that easier to understand nutritional information on product packaging would encourage them to cut down on unhealthy food/drink, rising to 81 per cent of 25-34s.

The introduction of the levy means the United Kingdom joins a few countries, including Mexico, France and Norway, have introduced similar taxes.

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