Sugar tax could lead to struggling British families paying even HIGHER taxes, claims new report
Levy could also increase Government borrowing following analysis conducted by the TaxPayers’ Alliance
A SUGAR tax could mean higher taxes on families and more Government borrowing, a new study claims.
Analysis from the TaxPayers’ Alliance found the sugar tax was not certain to raise the revenue claimed - leaving a gap that would hit hard-pressed families.
And researchers said it was likely to raise inflation, leading to increased Government borrowing costs.
Critics say ministers should be looking at encouraging people to give up sugar themselves.
John O’Connell of the TaxPayers’ Alliance said the sugar tax was an “ill thought out reaction to pressure from the public health lobby”.
He said: “Lasting change will happen via a long-term cultural shift, not by burdening the poorest families with a higher cost of living.
“The government should instead be looking at ways of encouraging personal responsibility and scrap the sugar tax altogether.”
It comes as the Government publishes its draft legislation on George Osborne’s sugar tax.
Treasury officials have been consulting on the UK-wide soft drinks levy which ended in October.
A levy is expected to be added to the production and importation of all soft drinks containing sugar.