Plans for £1 billion sugar tax on soft drinks to be launched this week
Controversial levy could DOUBLE the cost of fizzy drinks
THE TREASURY is set to enrage the soft drinks industry by formally launching plans for a £1 billion Sugar Tax this week – The Sun can reveal.
Sources claimed that consultation on the hated levy – which could double the cost of some fizzy drinks – will finally be published and could come as early as tomorrow.
This will confirm George Osborne’s plans to slap as much as 48p on a 2 litre bottle of Coke - and dashing hopes of a U-turn by new PM Theresa May.
An insider said: “Downing Street is keen to show this Government is not just about Brexit.”
The former Chancellor unveiled plans for a tax to tackle childhood obesity in his last Budget in March – drawing outrage from industry and Tory backbenchers.
Officials said the levy could raise £1 billion a year for the Treasury and would push up the UK’s inflation rate on its own.
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The Treasury’s fresh move comes as a new report warns the tax will wipe £130 million from UK GDP and cost 4,000 jobs – as reported by the Sun last week.
A new campaign from businesses employing more than 400,000 people across the country launches tomorrow calling on the Government to reconsider the tax.
The campaign – ‘Face the Facts, Can the Tax’ – claimed that sales of full sugar soft drinks fell 44 per cent between 2004 and 2014 but obesity rose by 4 per cent.
It reiterated that evidence from Mexico showed the levy may only knock FIVE calories from Brits’ daily diets – equivalent to the bite from an apple.
Gavin Partington, of the Soft Drinks Association, said: “Given the economic uncertainty our country is facing the last thing consumers need is the prospect of price rises, when the Government should be supporting families and businesses.
“It’s the wrong time and a bad tax, which risks causing thousands of job losses and yet will fail to make any difference to levels of obesity.”
He added: “We absolutely agree with the Government that obesity levels are too high and action is needed.
“But burdening businesses and consumers with an ineffective tax is not the answer.”
The tax is due to come into effect in 2018.
Lawyers believe it will fall foul of EU anti-competition law given milkshakes, lattes, biscuits and chocolates will remain unaffected.
A Treasury spokesman last night refused to comment on plans to launch the consultation.
But in a statement, he said: “The levy is about getting producers to use healthier ingredients to reduce the levels of added sugar in products out children consume.
“If they reformulate they won’t have to pay.”