Sugar Tax

Here's what you need to know: 

• What is the Soft Drinks Industry Levy?
  
• Why has it has come into effect? 
  
• Who's liable? 
  
• How much will it cost?
  
• Find out if you need to register – link below. 
  

What is the Soft Drinks Industry Levy?

The Soft Drinks Industry Levy, nicknamed the “sugar tax” by the media after the announcement in the 2016 budget, targets the producers (an exception is made to the smallest producers) and importers of sugary drinks to encourage them to remove unnecessary added sugar, promote diet drinks, and reduce portion sizes for high sugar drinks. It is important to note this tax does not apply to all sugar. 

Why has it come into effect?

The levy was introduced in April to tackle the UK's obesity rates. Unfortunately, the UK has one of the highest obesity rates among developed countries, and by 2050 over 35% of boys and 20% of girls aged 6 – 10 are expected to be obese. 

On average children are consuming three times the recommended sugar level. Sugar – sweetened soft drinks are one of the biggest sources of dietary sugar for children and teenagers. A single can of cola can contain 9 tea spoons of sugar or 35g, which is significantly more then the recommended daily intake of added sugar at 19g. Soft drinks were selected because many have no nutritional value and could be easily reformulated (as Tesco, Robinsons and The Co-Operative have already done) to contain less sugar and empty calories. 

Who is liable? 

To be liable your drink must meet all of the following conditions:

• It has sugar added during the production process, or anything (other than fruit juice, vegetable juice and milk) that contains sugar, such as honey.
  
• It contains at least 5g of sugar per 100ml in it's ready to drink or diluted form
  

It's either ready to drink, or to be drunk diluted with water, mixed with crushed ice or processed to make crushed ice, mixed with carbon dioxide, or a combination of these.

It's bottled, canned or otherwise packaged so it's ready to drink or be diluted.

It has a content of 1.2% alcohol by volume (ABV) or less

Click here to find out what is classified as sugar. 

Click here to find out what drinks are not liable for the levy. 

How much will it cost?

There are two cost points

• 18 pence per litre on drinks that have a total sugar content of more than 5g and less than 8g per 100ml
  
• 24 pence per litre on drinks that have a total sugar content of 8g or more per 100ml

Do you need to register for the Soft Drinks Industry Levy?

Click here to find out. 

Developing your own?

If you are looking to develop soft drinks packaging start the conversation with us. 

Take a look at one of our most recent projects - Kigo - an energy drink powered by natural caffeine and fruits.

"Rawlings were a natural fit with us, they were proactive and made things happen. The level of their experience shows when you deal with them, and the fact that we could get this project done without having to commit to very high numbers was impressive. I don't think we would have received this level of service from anyone else, they took care of everything." 

JAN SELL, OWNER, KIGO