British Treasury to impose tax on packaged milkshakes with sugar

London. In the fight against obesity, sweet, packaged milkshakes could soon be taxed in the UK. A sugar tax already applies to soft drinks with a certain sugar content. The Treasury in London is now proposing to expand the levy.

"Our country faces the enormous challenge of persistently high rates of obesity and overweight," states a ministry paper. Nearly two-thirds of adults and one-third of children are affected, and this is costing the healthcare system billions.

The ministry therefore proposes that packaged beverages containing milk or plant-based alternatives such as oat drinks should also be taxed if they contain a certain amount of sugar. Previously, these were exempt due to concerns about calcium intake.

A "sugar tax" on beverages has been levied in Great Britain for seven years. The "Soft Drinks Industry Levy" has been in effect since 2018. Many manufacturers have adjusted their recipes since the plans were announced, the ministry writes. Therefore, 89 percent of soft drinks sold in the country are not subject to the tax at all.

The tax demonstrates what can be achieved by addressing the causes of excessive sugar consumption. The industry has reduced sugar in beverages by about half (46 percent), the ministry said. It also proposes further lowering the threshold at which the tax applies – from 5 to 4 grams per 100 milliliters. The plans are now to be discussed.

RND/dpa