UK looks to expand sugar tax

Published 2024년 11월 5일

Tridge summary

The UK government is set to revise the Soft Drinks Industry Levy (SDIL), introducing an inflation tie and reviewing its scope to reduce sugar in soft drinks. The SDIL, introduced in 2018, has been effective in driving product reformulation, leading to a significant reduction in sugar in soft drinks. The government plans to adjust the rates annually to account for inflation and consider lowering the 5g sugar threshold, increasing the rate for highly sugary drinks, and possibly extending the SDIL to milk-based and alternative drinks. These changes, along with the thresholds for the tax, will be decided after Budget 2025, with potential changes to be implemented in April 2026.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The UK Soft Drinks Industry Levy (SDIL) was introduced in 2018 and has generally been considered successful in its goals to reduce sugar intake​ from sugary drinks and encourage reformulation​ across the beverage industry. But it hasn’t changed since it was introduced six years ago. Championing the success of the policy so far, the UK government is now outlining two key changes: a new structure that will see the levy tied to inflation with rates adjusted each year, and a review into the tax to consider whether its scope can be increased. What is not changing is the fundamental scope of the tax. Pre-packaged soft drinks with added sugar are taxed under a tiered system: with lower sugar drinks paying less tax than higher sugar ones. At the moment, drinks with less than 5g sugar per 100ml don’t pay the SDIL. Drinks with 5g sugar per 100ml or more pay a lower rate of 18p per liter; then drinks with 8g sugar per 100ml or more pay a higher rate of 24p per liter. One of the key aims of ...

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