Daily briefing

Soft Drinks Levy: The Sugar Tax on Your Shopping

The Soft Drinks Industry Levy — often called the sugar tax — charges manufacturers for drinks above sugar thresholds. Many brands reformulated; others passed costs to shoppers.

The levy was designed to reduce childhood obesity, but it also functions as a selective consumption tax on a narrow category of products.

Even after reformulation, price per litre on some drinks remains higher than pre-levy baselines when broader inflation is included.