Soft Drinks: Taxation
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the Soft Drinks Industry Levy on the dairy industry.
Answered by James Murray
The Soft Drinks Industry Levy (SDIL) is a tax on pre-packaged soft drinks with added sugar. Drinks without added sugars, such as plain cow’s milk, are not in scope of SDIL.
At Autumn Budget, the Chancellor announced a review of SDIL, including the current exemption from the levy for milk-based drinks.
The current exemption applies to milk-based drinks containing at least 75ml of milk per 100ml.
Due to the high sugar content of some milk-based drinks, the Government is reconsidering the evidence justifying the exemption. As young people only get 3.5% of their calcium intake from milk-based drinks, it is likely that the health benefits do not justify the harms from excess sugar.
The review will consider a variety of evidence, including the potential impacts to the diary industry, and no decisions have yet been made. The Government expects the review will conclude in Spring 2025.
More details of the review can be found on gov.uk here: https://www.gov.uk/government/publications/soft-drinks-industry-levy-review/hmt-hmrc-soft-drinks-industry-levy-review
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