Taxman collects over GBP 150 million from sugar tax

The new sugar tax on soft drinks has raised GBP 153.8 million (USD 196 million) since it was introduced in April 2018, the BBC reported on 20 November 2018. Covering the period from April to the end of October, it looks as if the tax is on track to raise the estimated proceeds of GBP 240 million (USD 306 million) for the full year. The levy is collected from manufacturers, whether they pass it on to consumers or not. There are 457 producers registered for the levy.

Soft drinks with more than 8 g of sugar per 100 ml pay GBP 0.24 per litre, while those soft drinks containing 5 g to 8 g per 100 ml face a slightly lower rate of GBP 0.18 per litre.

Pure fruit juices are exempt as they do not have sugar added. Drinks with a high milk content are also exempt, due to their calcium content.

Originally, the taxman forecasted revenues of more than GBP 500 million per year from the sugar tax, but that has now been lowered to GBP 240 million, because some manufacturers have reduced the sugar content in their products, including Fanta, Ribena and Lucozade.

In England sugar tax revenues are invested in school sports and breakfast clubs.

So far only a handful of nations, including Mexico, France and Norway, have introduced similar taxes.