Britain Expands Sugar Tax to Combat Obesity Epidemic

The UK government announced plans to expand its sugar tax to include pre-packaged milk-based drinks like milkshakes and coffee, aiming to curb obesity. From January 2028, drinks with over 4.5g sugar per 100ml will be taxed, potentially raising £45 million annually.

In a significant move to tackle rising obesity rates, the British government will eliminate the sugar-tax exemption for bottled milkshakes and milky coffee drinks, effective January 2028. This change, announced by the health department, seeks to encourage manufacturers to reduce sugar content in pre-packaged beverages.

The tax, known as the Soft Drinks Industry Levy (SDIL), originally introduced in 2016, specifically targets high-sugar drinks sold in cans and cartons. With this new measure, the tax will now apply to milk-based and plant-based drinks with added sugars, unless they are served fresh in cafes and restaurants.

By lowering the sugar-content threshold from 5g per 100ml to 4.5g, the government aims to promote healthier beverage options. This initiative is projected to generate an additional £45 million annually from 2028, contributing to Rachel Reeves' 2025 budget plan.

(With inputs from agencies.)