Budget 2016: New sugar levy on soft drinks industry

Sugary drinks are subject to VAT, but there are no other taxes or levies on manufacturers or importers.

A new sugar levy will be imposed on the soft drinks industry.

The government will consult on the details over the summer, for legislation in Finance Bill 2017 and implementation from April 2018 onwards.

The new levy will be paid by producers and importers of soft drinks that contain added sugar. It will be charged on volumes according to total sugar content, with an exclusion for small operators and producers of milk based drinks and pure fruit juices.