"Too Much Obesity, Pay Tax for Every Sweet Drink"... UK Aims to Collect 87 Billion Won Annually

Expanding 'Sugar Tax' Coverage to Tackle Obesity
Milkshakes and Caf? Lattes Sold in Stores to Be Taxed

The UK government, which has long struggled with obesity issues, is set to significantly expand the scope of the 'sugar tax' that has so far applied only to soft drinks. The tax criteria will also be tightened, putting considerable price pressure on many previously exempt brands such as Pepsi and Fanta. The revised measure is scheduled to take effect on January 1, 2028, and the government expects to raise an additional 45 million pounds (approximately 8.71 billion won) in annual tax revenue.

UK to Significantly Revise 'Sugar Tax'... Expanding Taxation to Milk-Based Beverages

Coffee stock photo. Getty Images

On November 25 (local time), UK Health Secretary Wes Streeting announced the revised bill in the House of Commons, stating that the existing tax threshold of 5g of sugar per 100ml would be lowered to 4.5g. As a result, brands such as Pepsi and Fanta, which were previously not subject to the tax, are now expected to be included under the new criteria.

The revision will impose the sugar tax on milkshakes and bottled or canned lattes and cappuccinos-milk and coffee-based beverages that were previously excluded. In addition, products containing dairy or plant-based drinks such as milk, soy milk, and oat milk will only recognize sugars that occur naturally in the milk (lactose), and any additional sugars will be subject to taxation. However, beverages made directly in restaurants and cafes will be exempt.

Government: "Worsening Childhood Obesity... Can No Longer Be Ignored"

Secretary Streeting emphasized, "The government will not turn a blind eye to the deterioration of children's health," making it clear that this revision is a policy aimed at curbing childhood obesity. The government plans to finalize the revised bill after consultations with the industry, and fully implement it starting January 1, 2028.

Stock photo of carbonated beverage. Pixabay

The UK first introduced the sugar tax on soft drinks in 2016 to reduce the nation's sugar intake. Since then, food companies have been credited with lowering sugar content by changing their recipes. According to The Guardian, between 2015 and 2019, 65% of beverages containing more than 5g of sugar per 100ml reduced their sugar content to below the threshold. Currently, about 90% of beverages sold contain less sugar than the taxable limit.

The sugar tax originated in Norway in 1922. Only 17 countries had implemented the sugar tax by 2000, but after the World Health Organization (WHO) recommended its adoption in 2016, the number of countries with a sugar tax has rapidly increased to over 120 today.

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