Sugar tax 2018: how much is it and what does it mean for soft drinks?

The price of a can of Coca-Cola, Red Bull and Pepsi are about to rise - but by how much?
Edwina Langley6 April 2018

Enjoy nothing more than a big slurp of Coca Cola straight out of an ice cold can? If so, look away now...

Today, you will have to pay more for the pleasure, because the sugar tax comes into force: fantastic news for health campaigners, not-such-good-news for lovers of sugary, fizzy drinks.

Designed to curb rising levels of obesity in the UK, since the soft drinks levy was announced in 2016 it has been met with both praise and condemnation from consumers.

Sugar tax campaigner (and celebrity chef) Jamie Oliver, for instance, called it a "tax for good", whereas 52,000 fans of Irn-Bru, outraged at subsequent plans to alter the sugar content of the recipe, signed a petition in protest.

But what exactly is the sugar tax? And what will it mean for some of the nation's best-loved drinks?

Find out below...

What is the sugar tax?

Announced by former Chancellor of the Exchequer, George Osborne, in the budget of April 2016, the 'Soft Drinks Industry Levy' - dubbed the 'sugar tax' - consists of two categories.

The first is a tax on the total sugar content of drinks with more than 5g of sugar per 100ml (taxed on point of production or importation at a cost of 18p per litre), and the second, a higher tax (24p per litre) on those drinks with 8g or more sugar per 100ml.

Drinks manufacturers have responded to these measures in one of two ways: by reducing the sugar content of their drinks - in some cases replacing it with sweeteners - or by proposing price increases to account for the levy.

How much more will soft drinks cost?

Drinks such as Coca Cola, Pepsico and Red Bull, which have stuck to their original recipes, will hike the price of their cans by around 8p (give or take).

Dr. Pepper, Sprite and Old Jamaican Ginger Beer will also get stamped with heavier price tags.

However, since Irn-Bru halved its sugar content - replacing lost sweetness with the artificial sweetener aspartame - it is now not liable for taxation.

Will all sugary soft drinks be affected?

No. Soft drinks will only cost more if, by Friday, producers have neglected to reduce the sugar content of their beverages to the recommended 'healthy' levels and have decided not to absorb the extra costs themselves but pass them on to their customers.

Pure fruit juices and milk-based beverages (i.e. those with calcium) will also not be liable for the levy.

When will the prices rise?

Today (Friday 6th, April).

It has been estimated the tax will raise £275million this year (less than the initial prediction of £520million) which will be spent on promoting healthier lifestyles in schools, including facilities for exercise and after-school activities, as well as initiatives centred on healthy eating.

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