Plan to expand sugar tax for milkshake

Plan to expand sugar tax for milkshake

James Gregory
BBC News
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The sugar tax applied to fizzi drinks is going to be extended for milkshakes and other milk-based drinks under new government schemes.

The government is consulting on proposals to eliminate tax exemption for dairy-based drinks, as well as non-decay options such as oats or rice.

Chancellor Rachel Reeves announced in his autumn budget last year that the government was considering widening the levy.

The so -called Chinese tax, which is formally known as soft drink industry levy (SDIL), applied to manufacturers and was introduced by Conservative Government in April 2018 as a means of dealing with obesity.

On Monday, the Treasury confirmed the proposals to reduce the maximum amount of sugar allowed in the drink, before they are subject to levy from 5G to 4G per 100ml.

Government analysis says that some 203 pre-pack milk-based drinks on the market, which sell 93% within the category, will be hit with tax until their Chinese content does not decrease according to proposals, says government analysis.

Concerns about calcium consumption included discounts for milk-based drinks, especially among children.

Treasury said that young people get only 3.5% calcium intake from such drinks, meaning “it is also likely that health benefits do not justify loss from additional sugar”.

Treasury said, “By bringing milk -based drinks and milk alternative drinks to SDIL, the government will present a tax encouragement to the manufacturers of these drinks to manufacture on existing progress and reduce sugar in its dishes.”

The government estimates that 89% of the cool drinks sold in the UK are not subject to tax since the manufacturers since 2018.

But it said that Levi effectively set the “target” below the 5G threshold, and the resulting products were below 5G.

Government counseling will run from Monday to 21 July.

According to government data released last September, SDIL has raised a total of 1.9 billion since its start in 2018. The revenue for HMRC for the 2023-24 financial year was £ 338 million.

In recent years, Levi’s opponents have included soft drink industry, pub and off licenses. Some people argue that levy affects low -income families and reduces to deal with obesity.

On the latest plans, the Industry Body the Food and Drink Federation said it welcomed the opportunity to share his ideas in consultation.

It said that “significant progress” was already created and “many years of investment in research and development” had reduced sugar in soft drinks by 46% in the last five years, with a reduction in pre-pack milk-based drinks in the last three years with a reduction in sugar.

It states that food and beverage manufacturers were facing a series of inflation pressure and “asked the government to be clear about their long -term goals to continue constructing the correct terms to newary terms and to promote business confidence”.

Rahel reeves
Chinese tax
Health
Workers
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