Tue, 29 Apr 2025

Tue, 29 Apr 2025 Plans to extend sugar tax to milkshakes

The tax will be applied to manufacturers of milk-based drinks and dairy-based substitutes, under the plans.

* The sugar tax, known as the soft drinks industry levy (SDIL), may be extended to milk-based drinks and non-dairy substitutes under new government proposals.
* The Treasury plans to end the exemption for dairy-based drinks, which were originally exempt due to concerns about calcium consumption among children.
* Only 7% of sales within the category would be exempt from the tax if the proposals are implemented.
* The maximum amount of sugar allowed in drinks before they become subject to the levy could be reduced from 5g to 4g per 100ml.
* Manufacturers will need to reduce their sugar content in order to avoid paying the tax, which has raised £1.9 billion since its introduction in 2018.
* The consultation on the proposals is open until July 21 and has been met with criticism from industry bodies, who argue that the levy disproportionately affects lower-income families and does little to tackle obesity.
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