Yesterday, the UK government published its policy document, ‘Overview of Legislation in Draft’, which outlines the changes to tax law which the government plans to introduce in its 2017 finance bill, in secondary legislation and in future finance bills.
This draft legislation includes information on the soft drinks industry levy (sugar tax) which will come info effect from April 2018.
With regards to the sugar tax the Overview of Legislation in Draft says:
“As announced at Budget 2016, and following consultation on the design and implementation of the levy over the summer, the government will legislate in Finance Bill 2017 for the Soft Drinks Industry Levy. This is a levy on importers and producers of beverages that contain added sugar to help tackle childhood obesity. The 2 thresholds, at 5g and 8g of sugar per 100ml have been designed so that, by taking reasonable steps to reduce sugar content, UK producers and importers of soft drinks can pay less or escape the charge altogether. The levy will take effect from April 2018.
There will be an exemption for the smallest operators and a credit against levy liability, subject to evidence, for liable drinks that are exported.”
The government expects the sugar tax to raise £520M in its first year and these funds will be used to double the funding available to primary schools for PE and sports programme. The government has estimated that the sugar levy will raise £320 million a year for primary schools to support healthier more active lifestyles in children. The funding will not only go towards expanding PE and sports programmes but to also expand breakfast clubs in primary schools ensuring that children have access to a healthy breakfast every week day.
The government has also published a full policy document on the sugar tax which gives further information on the objectives of the tax, who it will affect and how it will be monitored.
The Lake Foundation is glad to see that the government is making progress on implementing the sugar tax and hope that it will go some way to tackling obesity in the UK.
