Sugar Tax- how will it work?
A new sugar tax on the soft drinks will be introduced in the UK the chancellor announced yesterday.
So how will the sugar tax work?
The levy is squarely aimed at high sugar drinks- particularly fizzy drinks, which are popular among teenagers.
Pure fruit juices and milk based drinks will currently be excluded and the smallest producers will have an exemption from the scheme.
It will be imposed on companies according to the volume of the sugar sweetened drinks they produce or import.
There will be two bands – one for total sugar content above 5g per 100 millilitres and a second, higher band for the most sugary drinks with more than 8g per 100 millilitres. Analysis by the Office for Budgetary Responsibility suggests they will be levied at 18p and 24p per litre.
Examples of drinks which would currently fall under the higher rate of the sugar tax include full strength Coca-Cola and Pepsi, Lucozade Energy and Irn-Bru, the Treasury said. The lower rate would catch drinks such as Dr Pepper, Fanta, Sprite, Schweppes Indian tonic water and alcohol free shandy.
When it comes to the sugar tax, all the emphasis has been on drinks. There are a number of reasons for this.
Firstly, unlike a chocolate bar or slice of cake, they are not automatically seen as a treat. People who drink them tend to have them every day.
Secondly, some of the drinks are incredibly high in sugar. A typical can contains enough sugar – about nine teaspoons – to take someone over their recommended sugar intake in one hit.
For teenagers they are the number one source of sugar intake while overall, children get a third of their daily sugar intake from them.
They have also been dubbed “empty calories” as they have no nutritional benefit.
Mr Osborne said the money raised – an estimated £520 million a year, will be spent on increasing the funding for sport in primary schools.
There has been pressure on ministers to increase spending in this area to build on the legacy of the 2012 Olympic Games and in light of the low numbers of children who take part in regular activity.
But while the tax applies to the whole of the UK, Mr Osborne announcement on where the money is spent applies solely to England. The devolved administrations in Scotland, Wales and Northern Ireland are free to decide how to spend their share.
The issue has been described as one of the most serious public health challenges for the 21st Century by the World Health Organization, while NHS England’s Simon Stevens has dubbed it “the new smoking”.
Health Direct applauds this new initiative and is sure that this will be just the start. Mr Osbourne has a habit of returning to existing taxes and constantly increasing them- like to tobacco and wine.