Starting in 2028, pre-packaged milkshakes and coffees with high sugar content will be subject to a new tax, as the government expands its existing tax on sugary fizzy drinks. This adjustment aims to lower the threshold for taxable sugar content from 5 grams to 4.5 grams per 100 milliliters. High-sugar beverages such as Yazoo, Muller’s Frijj, and Starbucks Caffe Latte may be affected, along with products labeled as “high protein” like Ufit and Shaken Udder.
The introduction of this levy, initially established by the Conservative government in 2018, targets reduced sugar consumption by encouraging manufacturers to reformulate their products. The taxable products will include those packaged in cans and cartons but will exclude drinks sold directly in cafes or coffee shops. Notably, a “lactose allowance” will mean that some natural sugars from milk will not be counted towards the taxable sugar total.
Certain beverage categories are exempt from this tax, including fruit juices, alcohol-free beer and wine, and meal replacement drinks. Additionally, plant-based milk drinks containing 4.5 grams or more of total sugars per 100 milliliters will also fall under the levy.
Critics of the milkshake tax argue that it represents excessive governmental interference in personal dietary choices. In response, the Health and Social Care Secretary, Wes Streeting, emphasized the tax’s potential benefits for public health, citing concerns over childhood obesity and its associated long-term health issues.
The government claims that previous sugar taxes have led to a significant reduction—in some cases up to 46%—in the sugar content of fizzy drinks, suggesting positive effects on the diets of both children and adults. However, it remains uncertain whether the new tax will directly impact retail prices, as manufacturers might choose to absorb the costs or alter their recipes to decrease sugar levels.
Source: https://www.bbc.com/news/articles/ce91gn5e3yko?at_medium=RSS&at_campaign=rss