The Sugar Tax

The World Health Organization (WHO) has been advocating for the use of sugar taxes as a tool to combat obesity and other diet-related diseases since at least 2014. In 2014, the WHO published a report called “Fiscal Policies for Diet and Prevention of Noncommunicable Diseases,” which called for the implementation of taxes on sugar-sweetened beverages as a way to reduce their consumption and improve public health.

Since then, the WHO has continued to advocate for the use of sugar taxes as part of a comprehensive approach to promoting healthy diets and reducing the burden of noncommunicable diseases such as diabetes, heart disease, and certain types of cancer. The organization has highlighted the success of sugar taxes in countries such as Mexico, France, and the United Kingdom, where they have been implemented and have led to a reduction in the consumption of sugary drinks.

The WHO has also emphasized that sugar taxes should be part of a broader package of policies and interventions aimed at promoting healthy diets and reducing the availability and promotion of unhealthy foods and beverages. These may include policies to improve food labeling, restrict advertising of unhealthy foods, and promote the availability and affordability of healthy foods.

Overall, the WHO sees sugar taxes as a potentially effective tool to promote healthier diets and reduce the burden of diet-related diseases, but recognizes that they must be part of a broader package of policies and interventions to be most effective.

The Implementation of The Sugar Tax Throughout Europe

In the EU, many countries have now implemented taxes through various methods on sugar in a range of foods and beverages. The use of taxation has been a direct driver of reformulation. Throughout the Europe there has now been a 44% average sugar reduction with a 40% increase in low and no sugar sales within the beverage sector especially.

The Sugar Tax in the United Kingdom

Taxing sugary drinks has been on the cards with the UK government for some years now following calls from celebrities such as Jamie Oliver and nutritionists to reduce obesity especially in children. The perception is that high-sugar and fizzy or carbonated beverages are drunk so often that they lead to increasing levels of unwanted fat and a tax, set at whatever level should reduce consumption. The onus falls on the manufacturers.

Child obesity is a major concern for many Western countries and about one in ten children in England for example are regarded as very overweight, with a further larger group in the overweight category. Such a condition leads to increased risk of diabetes and various other obesity related conditions.

The Spring budget of 2016 means that a new sugar tax will be implemented. Its appearance has been hailed by many as about time if child obesity is to be tackled.

The tax will be imposed on the manufacturers, the companies who produce or import high volumes of such beverages. There are two bands, one for total sugar content above 5g per 100 millilitres and a second, higher band for the most sugary drinks with more than 8g per 100 millilitres. The Office for Budgetary Responsibility suggests they will be levied at 18p ($0.25) and 24p ($0.34) per litre (liter) depending on the sugar content.

The higher rate of tax falls on full-sugar drinks offered by Coca-Cola, Pepsi with brands such as Irn-Bru, Lucozade Energy and Ribena will be affected. The lower rate would fall on Fanta, Dr Pepper and Sprite for example.

Any milk-based or dairy drinks such as milk shakes, or pure fruit juices will be exempt from this tax scheme.

The tax comes into effect in April 2018, which is expected to allow the industry time to adjust and alter any formulations to reduce the amount of sugar in their drinks.