According to CNN, the UK government announced a new tax on sugary drinks in an attempt to tackle childhood obesity. Drinks with a total sugar content above 5 g per 100 mL will be affected by the levy, with a higher rate for drinks with more than 8 g. The government is hoping the tax will help cut down childhood obesity rates in the United Kingdom, which are amongst the highest in developed world—one in five English children is obese by the time they leave primary school.
Introduced by George Osborne, the UK’s chancellor of the exchequer as part of the UK budget, the tax will not apply to milk-based drinks and fruit juices. The government expects the tax to bring in £520 million ($732 million) in the first year and has stated that the money will be used to fund more sports in schools.
The tax will come into effect in April 2018, giving the industry time to adjust and change their formulas to reduce the amount of sugar in their drinks. Government documents suggest the tax rate could be equivalent to £0.18 ($0.25) and £0.24 ($0.34) per liter, depending on the sugar content.
