Sugar Tax confirmed in 2017 Budget

Posted on 08/03/2017 · Posted in Palm PR

In the 2017 Budget, Philip Hammond confirmed that the Sugar Tax will come into effect in April 2018. This follows the path laid out in the 2016 Queen’s speech, although there was speculation that there may be changes under Theresa May’s new government.

As before, pure fruit juices will not be taxed as they do not carry added sugar, while drinks with a high milk content will also be exempt because of their calcium content. The percentage of milk content is yet to be confirmed.

The tax will take effect as follows: drinks with more than five grams of sugar per 100ml will incur a 18p per litre levy. Those with eight grams or more of sugar per 100ml will be taxed 24p per litre.

For brands that sell sugar-rich beverages, this development offers as much an opportunity as it does a challenge. Click here to read an article in PR Week by Palm Founder Liam Keogh on how businesses can respond to the new levy