Schools across Britain will see an additional 1 billion pounds ($1.2 billion) for sports from a tax on sugary beverages that will be imposed beginning in April 2018, said Phillip Hammond, chancellor of exchequer, in laying out the proposed government budget. The tax was announced last March as step toward better public health through lower rates of obesity, diabetes and tooth decay, said the Independent.
The tax would be 18 pence per liter (22 cents per 34 ounces) for drinks containing more than five grams of sugar per 100 ml and 24 pence (29 cents) per liter for drinks containing more than eight grams of sugar per 100 ml. By comparison, Philadelphia, the first large U.S. city to adopt a soda tax set its levy at 1.5 cents per ounce.
Hammond said revenue from the sugar tax could be lower than expected if beverage companies reduce the sugar in their drinks below the taxable level, reported the Independent. The tax is aimed at drinks with added sugar and exempts 100 percent fruit juice and drinks with a high milk content. The British Soft Drinks Association said “there is no evidence taxing a single product or ingredient has reduced levels of obesity anywhere in the world.” The Obesity Health Alliance said the tax is a bold step to reduce sugar consumption by children.