Sugar Tax Explained

You may have noticed the prices of your favourite drinks going up and not even a little bit. The government taxes companies based on the sugar content of their drinks. For example, standard Coca-Cola, Pepsi, Fanta etc will have a massive price boost. However, diet drinks and sugar-free will remain the same. Find out more here.

(Image credit: englishinnewspaper.wordpress.com)

What is sugar tax?

The sugar tax was introduced on the 6th April 2018.  Hoping it'll crack down on the amount of sugar in drinks to reduce the risk of obesity, type 2 diabetes and tooth decay. Over the past decade, statistics have shown that health is declining due to too much sugar consumption and it has a correlation with the fact that drink brands have steadily risen their sugar content. 

Companies will get taxed for drinks with a sugar content of more than five grams per 100ml. A higher levy is imposed on drinks with 8g per 100ml or more.  

The price increase

To put things into perspective as to how you'll see it on the shelves, a standard can of full-fat coke has gone up by around 8p. A 1.75ml bottle of coke has increased from around £1.25 to £1.49. Other brands to have the same increase will be Irn Bru, Red Bull and Dr Pepper. 

Fruit juices and drinks with a high milk content are not included in the tax along with Pepsi Max, diet Coke, Coke zero etc (of course, Gookie Dough is exempt too, panic over). 

The effectiveness 

Other countries have introduced similar methods before and many have been successful. Mexico introduced a 10% tax on sugary drinks in 2014 and saw a 12% reduction. Of course, not everyone agrees with the tax and states that parents shouldn't be allowing consumption of sugary drinks. 

What about food? 

Of course, chocolate and sweets are also high in sugar so fizzy drinks aren't the only issue involved. There's a programme aiming for a 20% reduction in sugar by 2020 and this includes all goods sold in coffee shops and restaurants. The conclusion is to help the NHS and health crisis on problems such as diabetes and to protect public health. 

So, there you have it, the facts! Any thoughts on the matter? Let us know in the comments below.